Ravi Pandit, Chairman and Group CEO, KPIT Cummins

There are some changes in the service taxes applicable to exporting companies which we would like to study further and in detail. I am happy with the significant investment that the government plans to do in the area of infrastructure.

The deficit to GDP ratio has to be seen not on a year-on-year basis but over a period of years because some years it would be deficit if there is slackness in the market and in some other years there might be surplus.

Thus the deficit should be averaged over a period of few years and not a single year. The current high deficit ratio is not something that one needs to be worried about.

Rajoo Goel, secretary general, ELCINA (Electronic Industries Association of India)

Budget is neither negative nor positive. It has not taken any definite measures to promote industry. Good thing is that it has kept excise duty at 8 per cent, removed FBT. But seeing economic slowdown and recession, scenario, it has not taken any important step to boost industry. Same is getting reflected in markets today.

Ramkumar Subramanian, Vice President, Sales & Marketing, AMD India

The Unique ID project is a much needed and long overdue project which can dramatically change the way citizens interact with various government and non-government institutions by bringing greater transparency and accountability.

Government should invest in appropriate data mining solutions to leverage the tremendous amount of data which could be utilized very effectively. The UID project has the potential of boosting E-Governance in the rural areas by enhancing projects such as CSCs and improving the overall interaction between citizens and government.

Surjeet Singh, CFO, Patni Computer Systems

For the IT services sector in particular, the FBT removal and reforms in indirect taxes is seen as a major plus, allowing for stock based compensation to be more effective. In a knowledge sector such as ours, this calls for better attraction, talent retention across all levels, inspires innovation and entrepreneurship.

The hike in MAT from 5 to 15 per cent is a slight disappointment and will lead to higher cash output in short term. We are also awaiting greater clarity on the service tax on IT services exports and expect further policy announcements in public sector disinvestment and infrastructure reforms in the days to come.

Sudip Nandy, CEO, AricentM

Aricent welcomes the Union Budget 2009 as it delivers on quite a few of the expectations of the IT industry. We are particularly pleased with the one year extension granted to the tax holiday scheme as it would greatly benefit the SMEs especially given the tough market conditions faced due to the downturn.

It is heartening that the finance minister has abolished the Fringe Benefit Tax and double taxation on the packaged software which will simplify business.

However, the increase in MAT is a bit of a concern as it could impact current cash flow for companies.

Madan Padaki, Co Founder & CEO, MeritTrac Services

The Budget has bought cheer to an economy much in need of a boost. The tax benefits extended to include loans taken for vocational education will provide an impetus for growth for this sector. The growth in this sector is critical to have a large talent pool of skilled, trained and assessed human resource in the country.

Jaswinder Ahuja, Corporate Vice President and MD, Cadence Design Systems

The Union Budget seems to be pro-development and has made some welcome allocations towards infrastructure creation and betterment as well as social welfare projects. The budgetary allocation towards schemes such as UIDAI will set the tone for future public private partnerships as well. Reducing customs duty on LCD panels and introducing customs duty on set-top-boxes both signal a pro-manufacturing agenda, which is much needed.

Bikram Dasgupta, CEO, Globsyn Group

The budget to be balanced and has opened doors for education and made sufficient efforts for bringing in much needed reforms in the society.

Move to set up central university in each state and redefining the investment for higher education by setting up of more IITs and IIMs, STPI scheme extension are welcome steps as also defining the software product as a service.

However much is left for the SME sector of software industry to give it a further fillip in order to march the growing requirements of the economy.

Praveen Bhadada, Engagement Manager, Zinnov Management Consulting

As a result of the exemption of the value attributable to the transfer of the right to use packaged software from excise duty,piracy would reduce in domestic software market and therefore sales would go up.

With the mandate to increase the banking network in the country, this is an opportunity for banks to go to un-banked markets. This would, in turn, provide an opportunity for Indian IT services companies to help the sector with solutions like centralization of core-banking system in these un-tapped geographies.

Maninder Singh Grewal, MD, Religare Technova

We were hoping that this year could have been used to provide world-class processes and practices for our domestic sector, whether public or private; whether services or manufacturing. Therefore, instead of being the proactive agent of change, the budget represents a prudent and cautious approach not reflective of the newer aspirations of the majority of our population or of the energy of our youth”