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Govt ignoring SMEs: Ex-Nasscom chief

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CIOL Bureau
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CHENNAI, INDIA: Former president of the National Association of Software and Services Companies (Nasscom), Kiran Karnik, on Tuesday said that state governments often adopt a discriminatory stand against small and medium enterprises (SMEs) and play it safe by purchasing only from big IT companies.

Karnik made this remark while speaking at a conference on entrepreneurship and incubation organised by ICT Academy of Tamil Nadu and the Nasscom.

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Criticizing governments for setting criteria and standards that permit only experienced companies to bid for contracts, Karnik said, “Startups and small companies, even with good products and technology, get elbowed out in the race.”

The former Nasscom chief, who is also member of Scientific Advisory Council to the prime minister, urged authorities to encourage innovation and entrepreneurship by considering eligible start-ups while awarding contracts.

“State governments have a proactive role in encouraging innovation and invest in incubation facilities. They should give grants to start-ups for patents as they are extremely expensive,” Karnik said.