Welcoming government's proposal to form a research funding body, information technology-business process management (IT-BPM) industry body Nasscom on Tuesday said the move will promote scientific research and help India gain leadership position globally in areas like engineering and R&D.
The association in a statement said, "For technology driven sector like engineering and R&D, funding is always difficult as technology is yet to be recognised as collateral to offset risks. Therefore, the proposal to set up a research funding organisation is indeed welcome."
Finance Minister P Chidambaram, in the interim Budget for 2014-15, said a research funding body will be set up and contributions made towards the organisation will attract tax benefits.
"Now, a Research Funding Organisation is to be set up to fund research projects selected through a competitive process," Chidambaram said in the Parliament. He had announced to set up a Rs. 2,000 crore fund in his budget for 2013-14 as well, so as to boost scientific innovations that can improve the life of common man.
"We will work with the government on how best to scope the objective and research areas for funding to build India's leadership in technology," Nasscom said.
The body added that other announcements like continued support to NSDC and other skill building initiatives and steps to ensure MSME's participation in public procurement will have a positive impact on the $108 Indian BPM industry.
"Some of the policy issues related to encouraging and supporting start-ups, entrepreneurship and simplification of procedures will require a full-fledged Finance bill, and we will continue to work with the government on these issues," it added.