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The STPI Scheme has proven to be a big success and a major contributor to the growth of Indian economy. (IT-BPO exports: $32 Billion, one million direct hires and may be up to 4 times indirect beneficiaries). The tax holiday breaks have helped nurture / support the industry and the growth has helped spread wealth and employment. The extension of tax holidays for STPI units beyond 2009 will help them come at par with those available to the SEZ units. This will help sustain growth to the sector already reeling under the impact of strengthened rupee and slowing global growth. Currently, the US has totalisation agreements with 18 countries that allow H-1B Visa holders to be exempted from Social Security. Indian Government should proceed to sign the totalisation agreement with the US Government. There is a substantial cost that Indian IT industries have been bearing because of it. According to an estimate, the total forfeited sum comes to about $1 billion annually.

Lalit Lahoty, Vice-President,

Fujitsu Consulting India Ltd

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