Budget is a mixed bag says industry

Budget is a mixed bag, says industry

The response of the industry players echoes the sentiments that they expected more

Monday, July 06, 2009

Girish Trivedi, Deputy Director, ICT Practice, Frost & Sullivan, South Asia & Middle East Impact

We still need to assess if increase in consultancy service tax rate includes IT consulting services as well, if yes might be an additional burden on most of the large IT companies who have started taking lot of consulting work along with their IT projects.

No announcements of 3G and revenues that can be generated as a result of auctions etc. It also means that the overall 3G launch might take a bit more than expected.

Extension of tax holiday for STP scheme which was expected is positive, however a longer term view should have given a better impetus to the industry which is suffering due to low opportunities in traditional US/ European market. Duty on set -top box might be good for local manufacturing companies, but since most of these boxes are imported, the costs will get passed on to the users.

Ganesh Guruswamy, Vice President and Country Manager, Freescale Semiconductor India

Setting up of Unique Identification Authority of India (UIDAI) and investments in SMART infrastructure offers opportunities for Semiconductor industry to introduce new solutions and will also generate entrepreneurs.

I am particularly delighted about the increased focus on development of technical graduates which is essential in a country like ours where human capital is a key asset. Allocation of Rs. 2,113 crore for IITs and new IITs will create world-class educational centers that will nurture talent in India.

Alok Bharadwaj, Senior Vice President, Canon India

Like always, the budget is a mixed bag. The half glassful is the removal of surcharge and increase in standard deduction by Rs.. 10,000. This will improve the consumption sentiments. Consumer market will indeed show buoyancy. The abolition of fringe benefit tax is a big relief.

The half glass empty part is the increase in MAT to 15 per cent and status quo on CST tax which was expected to come down to 1 per cent to give way to GST next year.

©CyberMedia News

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