New Delhi: IT industry body Nasscom Friday said the Budget remained silent on bringing in a conducive policy for special economic zones and termed it a 'missed opportunity' for the country.
"One key exclusion in the Budget was a conducive policy for special economic zones (SEZ), leaving it as a missed opportunity for India as other countries continue to provide benefits to enterprises. The SEZ benefits shall end in March 2020, but there is no clarity on the new SEZ policy or an indication of what is to come," Nasscom said in a statement.
It pointed out that a consistent ask from the industry has been a forward-looking SEZ policy to strengthen India's position as a global hub for IT services.
"This sector contributes 7.9 per cent to the GDP and is one of its largest contributors, and creates around four million jobs, hence, a lack of incentives will impact India's image…," it added.
The software body had earlier urged the government to continue the tax incentives to units in SEZs beyond March 2020, saying that such a move will provide the industry with certainty and enable its players to invest in long-term strategy.
The association – which represents the over USD 150-billion Indian IT industry – Friday said the Budget sets the right vision for achieving USD 5-trillion economy target, but the next steps need to be outlined in detail for the realisation of this goal.