Click to play videoNew Delhi: Infosys Technologies Ltd announced a net profit of Rs 4,659 crore for the fiscal year 2007-08 but the company feels the Government’s lack of clarity on tax breaks for software technology parks may hurt the IT industry.
A top official of the company said India could lose to other countries in terms of job creation because of the government’s lack of clarity. “I think India is going to suffer,” said V Mohandas Pai, member of the board and director, HR, Infosys Technologies Ltd.
“I sense there is some angst in the Government against software companies. What the government seems to forget is that this industry created 4 lakh 30 thousand jobs in this fiscal. This industry is the leading job creator for the middle class,” said Pai.
“After PSUs, it is the IT industry which is creating jobs for the middle class. If you don't give incentives to the industry, particularly the BPOs and small industries, then you are missing something big. The government of India thinks it is all very easy-they want to throw out the baby with the bathwater. I think India is going to suffer.”
Infosys declared a special dividend of Rs 20 per share (400 per cent on par value of Rs 5 per share) for fiscal 2007-08. In a notification to stock exchanges on Tuesday, the company said the special dividend was being offered to celebrate achieving $1.12 billion (Rs.46.2 billion) net profit for the fiscal (FY 2008) under review.
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