Deepak Ghaisas, CEO, India Operations and CFO, i-flex
budget from long-term perspective provides positive
incentives to increase investment in the educations
system - both in secondary and higher education. That
is a vital requirement for the IT industry in the coming
years as the shortage of talent is a major constraint.
there have been no major signals on upgrading infrastructure
especially as we need large investments in infrastructure.
Some estimates put the requirements at over $100 billion
and the IT industry needs infrastructure if it is to
continue to grow.
planned expansion of expenditure on e-governance is
a good signal for the IT industry. It will serve to
expand the domestic market and IT companies will see
government spending coming their way which is a good
IT industry had some expectations. One of the hopes
was that the government would consider extension the
Software Technology Park scheme and Section 10A of the
Income Tax Act beyond 2009. This would be especially
important for IT SME sector.
IT industries are already paying tax but the MAT imposition
on the IT industry would negatively impact those of
SME enterprises who are not paying any tax
imposition of fringe benefit tax on ESOPs is most surprising.
This will make current ESOPs expensive and would also
make it difficult for IT industry that uses ESOP as
a major tool to attract talent.
has been no further clarification of the SEZ scheme
and this will continue to keep many IT companies from
finalising their capital expenditure plans.