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Vendors give thumbs up to budget 2010

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DQW Bureau
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“We are glad that the FM has unveiled

the roadmap for href="http://dqchannels.ciol.com/content/reselleralert/109120104.asp">GST

with a definite date for implementation, which

will be April 2011. Unification of the rate on excise duty and the

service tax has been a step in the right direction towards

implementation of the GST. The rate of service tax as well as that of

excise duty will now be 10 percent. This will also help mitigate the

issue of CENVAT overflow for manufacture of IT products in the

country. We have welcomed the setting up of the Technology Advisory

Group under the chairmanship of Nandan Nilekani for monitoring

effective IT implementation in projects of National eminence.”

Vinnie Mehta, Executive Director,

MAIT

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“This year's budget is aimed at a
positive direction. The impressive growth of the manufacturing sector

in the third quarter of the current year has reinforced that the

economy is reviving but we need to move ahead with caution. With the

continued support from government on stimulating the economic

recovery, the industry will be able to strengthen itself further. The

Technology Advisory Group for Unique Projects (TAGUP) is a

recommendable initiative of the Government and a step closer towards

e-governance. In addition, for MNC's, simplifying the FDI policy

would help to improve the overall investment environment. For the

common man, the reduction of customs duty, central excise duty and

special additional duty in certain goods and commodities critical to

SMEs and SMBs will be beneficial for the Indian household. The tax

slab for the personal income and investment will also give a boost to

the average mid-level income group.

Andrew Horne, MD, Xerox India

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“This year's budget was mostly a
calm budget for the IT industry. The good part is that it reflects a

strong flavor of social inclusion signaled by the focus on

development fund and allocation for the education segment. This is a

welcome move and bodes well for uniform social growth. The attention

to infrastructure development is a continued note in the budget

bouquet, and one that has shown results already.”

Rajesh Janey, President-Sales,

India & SAARC, NetApp

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The

Government was in an unenviable position to withdraw some of

the stimulus to reign in the fiscal deficit, so some not so popular

decisions were expected like increase in excise duty. However the

good thing is that the increase is not as steep as the drop, so in

that sense yes it has met the expectations. It was expected that the

Government will announce some benefits for users of green technology,

besides just solar panels. Either the green products should have had

some concessional/lower duty or corporates adopting proven green

standards/compliance should have been given some tax benefits. This

would have encouraged higher/faster adoption of green technology

amongst end-consumers.”

Jayesh Kotak, VP-Product

Marketing, D-Link India

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“Given that the industry is still in
a recovery mode the tax incentive should have been extended. The

rolling back of excise duties may affect sales. There has been no

proposal to abolish Special Additional Duty (SAD) across products

which is discouraging. We are glad that the roadmap for GST has been

finally unveiled, which is very critical for creating a single-India

market. We hope for better involvement and engagement of the

Government with the industry, as the finer details of the GST is

worked out.”

Rajan Sharma, GM, GIGABYTE India

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“Our FM has done a commendable job of
partially withdrawing the stimulus by balanci style="background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">ng

it

with various schemes which should accelerate GDP growth.

The focus on the rural economy with substantial and higher

allocations will more than make up for the slack in demand, if any,

due to the marginal increase in the excise duty rate. This budget

will lead to an increase in the feel good factor which is believed to

play an important role in increasing the demand of consumer products.

It is very heartening to note that the cost of mobile phones will

come down and will further boost demand and encourage local

manufacturing. I am disappointed, however, by the lack of adequate

attention to promote the local manufacturing of IT hardware and to

increase domestic consumption of PCs. style="background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">

I feel that the economy now requires for inclusive growth not only

inputs in agriculture and rural infrastructure but also in IT

literacy and IT infrastructure.”


Ramesh A Vaswani,

Excecutive Vice Chairman, Intex Technologies India








“We are delighted that the Finance
Minister has recognized the key role our industry can play in driving

technology led inclusive growth across the country, apart from

directly contributing as an employment generator and foreign exchange

earner. According to the announcement of the Technology Advisory

Group under href="http://www.ciol.com/News/Newsmakers/News-Reports/Nilekani-quits-Infosys-board-to-head-govt-project/25609121495/0/">Nandan

Nilekani, automation of central excise, GST and

commercial taxes will enable the vision of citizen centric

governance. Our industry will partner with the government to drive

inclusive growth within India, while continuing to be the leader

around the world in IT and business process solutions.”

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Pramod Bhasin, Chairman, NASSCOM



“There are numerous positives for our
industry in this budget, particularly on simplification. The removal

of anomaly in Section 10AA of the SEZ Act and the Finance Minister's

reaffirmation on the importance of SEZs will help the industry to

take forward its SEZ plans across the country. The enhanced deduction

on R&D investment will propel greater thrust on innovation and IP

creation helping India to realize its vision of being the global

R&D

services hub. Also, the reduction in personal income tax will greatly

benefit the employees in our industry who will help to drive both

enhanced savings and consumption within India. At the same time, the

clarification on duty applicability for pre-packaged software as well

as service tax refunds will provide the much necessary simplification

of policies.”

Som Mittal, President, NASSCOM





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