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By Pravin Dhole, head of the Electronics sub-committee , MCCIA: | 01 Jan 1900
The budget may be good for the agriculture and the IT industries, but will lead the rest of the industry into trouble in the next three to four years. The kind of policies that have been announced will take both the small scale and the automobile sectors into doldrums. All small-scale industries in the Pune region that are now struggling will have to close down.
The decision to allow second hand cars is not a wise one, despite the heavy imposition of duty. Prices can be under invoiced and vehicles brought in. That will stifle the auto sector.
Hemant Karandikar, MD, Global Weighing (India)
I welcome extension of tax holiday to infrastructure and further benefits to grain storage and handling related construction activities. These incentives will give a boost to the development of infrastructure and reforming grain trade.
The tax concession (excise) for the food-processing sector is a right step but not enough. This industry should have been brought on par with infrastructure or IT industry. For a primarily agricultural country like ours this would have larger benefits.
The general direction of raising excise duty and lowering customs duties is wrong and unfair for any local manufacturing industry.
Murali Santhanam, MD Jobcurry Systems
In his budget speech, finance Minister Yashwant Sinha has reiterated the sustained positive growth of the software sector. The IT industry’s wish list for this budget had pointed out two issues that act as impediments in this growth – quality technical education and poor infrastructure. Mr. Sinha’s budget has rightly addressed these issues.
The FM’s announcement of the upgradation of Rourkee Engineering College to an IIT and increasing funding for the completion of the IIT at Guwahati will certainly result in augmenting technical education in the country. His proposal to set up new IITs and engineering colleges as well as boost efforts at achieving computer literacy fulfils the need of the hour.
Mr. Sinha’s appointments regarding the national highway development programme, completion of the golden quadrilateral as well as the package of initiatives to improve power distribution in rural areas need to be lauded. However, the feasibility of his promise of checking electricity theft is questionable.
We also welcome Mr. Sinha’s announcements on his plans to introduce the convergence bill, the reduction in customs duty on IT and telecom products and allowing Indian companies overseas investment upto 50 million dollars.
