IT Vision 2010, an action plan formulated by the ministry of information technology, has suggested incentives like a tax holiday for companies that set up information technology infrastructure and complete depreciation on software and communication items used for setting up IT infrastructure. The plan aims to make India "a global information technology power and one of the largest generators and exporters of software in the world in 10 years."
The plan, which will be implemented in three phase, suggests policies to accelerate the growth of the Indian infotech industry and help Indian companies become global players and increase foreign direct investments in India.
In the first phase, which will be completed in 2000, various proposal and programs to improve IT infrastructure will be formulated, while in the second phase, plans will be concretised and fine-tuned. In the second phase, to be completed by 2005, more projects and policy initiatives will be brought under the ambit of the action plan.
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The third phase, to be completed by 2010, will build on initiatives already taken to enable India to reach among the top 10 global IT players and among the top five software exporters.
According to the plan, the government will provide incentives such as a tax holiday for companies engaged in setting up IT infrastrcture under Section 801 a of the Income Tax Act, tax rebate on investments made in debentures and equity shares of public companies engaged in providing IT services under Section 88, IT Act, and complete depreciation on software and communication items for setting up IT infrastructure within two years.
The action plans also propose exemption of excise duty on local language-based computing products to enable increased use of computers, "Customs duty as applicable in the case of setting up infrastructure projects liek power, telecom be applicable on computing equipment inclduding communication equipment needed for setting up IT infrastructure," the Vision 2010 Action Plans says.
The plan includes strengthening indigenous capacity including ATM test beds, Java Competency Centres, work towards providing better datacom facilities, expansion of Software Technology parks of India (STPIs). It calls for an increased participation between the government and private sector to boost the domestic infotech industry.
The plans also foresees joint efforts between state governments, various programs relating to quality certification of software, multimedia promotion program, Iocalisation of software, initiate setting up of national science and technology network and programs relating to e-governance.
The government will also initiate programs to create national information infrastructure (NII) test beds, total government computerisation and a plan for national software capacity enhancement. Various programs to cover intellectual property rights-related issues will also be taken up.
Various projects will be undertaken to enhance the competitiveness and create new market opportunities for the Indian infotech industry. Localisation of software and other applications and penetration of personal computers hae been accorded high priority in the action plans. Various government organisations and societies will undertaken programs in this regard.
The IT vision 2010 lays special emphasis on generating extra manpower in the infotech industry and proposes initiating various progr