Quote from Mr Kamal Mansharamani, Director and Co-founder workXmate.com on his expectations from the new Government in the IT industry:
India’s IT industry has traditionally been a Services Industry. However, in the last few years, there has been a paradigm shift in the industry and a lot of new start-up companies have sprung up that are focused on the product business. These companies are building products for the global market. This development augurs well for the industry. Hopefully some of these companies will build great products and make it big in the future.
Our expectation from the new government is to provide an eco system to support these companies. This would require creating a mechanism for fostering greater interaction between the government, industry and the academia. In addition, we expect the new government to create a mechanism for providing financial assistance to start-up product companies. Product development requires significant investment in the initial years in product development and sales & marketing. Product companies find it very hard to raise seed money. The banking system is also unable to help as there are no assets or receivables to secure the loan. We would like the government to work with the industry associations to create a mechanism to provide financial assistance to product companies in the IT industry.