Political showdown coming for India's techies

Steve Hamm

One of the interesting undercurrents at the NASSCOM conference in Mumbai this week was whether the central government will extend its program of special tax breaks for tech industry companies. Until fiscal 2009, any tech company anywhere can register to be considered part of a government-sanctioned technology park--and get tax breaks. A new law creates so-called Special Economic Zones, which must be large operations (25 acres or more) in specially approved locations. It looks like most large companies will be able to qualify, but not the startups that the country needs to provide the next generation of disruptive innovations.

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