"Excessive focus" on IT irks Assocham

NEW DELHI, INDIA: The Associated Chambers of Commerce and Industry of India (Assocham) has cautioned the government against giving “excessive focus” on IT and ITeS sector, while ignoring other sectors potential enough to generate growth and employment.

It urged policymakers to focus more on sectors such as manufacturing, agriculture, services and allied sectors, which contribute 17 per cent to the nation's GDP. The IT sector contributes only five percent of the GDP, the industry body pointed out.

According to Venugopal N. Dhoot, president of Assocham, the time has come policymakers' attention should be drawn towards sectors that contribute 70 percent of government revenues and provide huge employment opportunities on sustained basis than drive and accelerate IT and ITeS.

"India needs to understand the importance of the balance of 95 percent of the economic activity which hover around manufacturing, wholesale and retail, tourism and travel, healthcare, education, construction and retail business worldwide," he said in a statement.

Citing successful examples in countries such as the US, Japan, Taiwan, Europe, South East Asia and Brazil, Assocham asked the government to encourage the growth of SMEs to boost the manufacturing sector, which has tremndous growth potentional.

The statement added that policies should be formulated in a way so as to attract maximum amount of investments.