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Home  » Business » IT sector doesn't need trade unions: Karnik

IT sector doesn't need trade unions: Karnik

Source: PTI
December 08, 2005 13:12 IST
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The IT sector in India needs better infrastructure and not trade unions to maintain its high growth and protect the interests of IT professionals, Nasscom president Kiran Karnik said.

''Unions and associations are part of a democratic system... the IT professionals don't feel the need for unions,'' he said in Kolkata.

Dismissing arguments put forth by CITU and some Left parties for forming of trade unions in the IT sector, he said, ''There are a large number of people working in the IT sector. They are well paid and have access to top management of respective companies. Given their condition, there is no need for trade unions''.

Nasscom president Kiran Karnik on Wednesday urged the West Bengal government to keep politics out of the IT industry and find new IT destinations in the districts of the state.

''The state has done a great job but they should keep in mind that industry should be kept out of politics,'' Karnik said.
He disapproved of strikes in IT industry, saying ''in many ways, this industry is becoming an utility sector like power and water supply.  Therefore no outside intervention should be allowed to disrupt operations''.

Karnik, who hailed the West Bengal government's initiatives for facilitating growth of the sector, said that the real concern for the sector was lack of quality infrastructure in most parts of the country.

''This is an industry, where logistics play a very major role. There is need for more SEZs to address this problem,'' he said, seeking the Centre's attention on the matter.

Besides the Centre, Karnik also urged the state government to address the problem of infrastructure to maintain and speed up growth. ''We will ask the West Bengal government to focus on this area. There is also the need for decentralising the industry, which is mainly concentrated in Kolkata,'' he said.

Stating that Siliguri had the potential to be an important IT hub to address the north Bengal and North-eastern markets, Karnik said the state government should immediately start building infrastructure there as it would take another five years to make the centre suitable for attracting large companies.

He said though the state has recorded impressive growth in recent years, it still had a long way to go to catch up with Bangalore and Hyderabad.

''The IT exports from Bangalore was about Rs 30,000 crore (Rs 300 billion) last year while the same from Kolkata was Rs 2,200 crore (Rs 22 billion).  It, therefore, still has a long way to go,'' he said.

Karnik said the IT sector had the potential to dispel economic disparity through launch of innovative projects, as was witnessed in the cases of some IT projects undertaken in suburbs and rural areas in Karnataka.

Besides, it has appeared to be a major area of absorption for educated unemployed youth in India, he added.

Additional Inputs: UNI

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