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Budget 2010: What India Inc wants
February, 20th 2010

We would expect the stimulus package that the government has announced (countervailing duty, CVD tax reduced from 10-8%) to continue for some time as the investment climate has improved. B2C business looks good but B2B business needs to scale up further."

I would also expect in the budget, the correction of the anomaly in few IT products categories like printers on abatement.

The government had amended the duty structure basis from value based to retail price based with an abatement of 20 per cent.

This abatement is quite low and the industry still requires the support of the government to increase it to 30 per cent so that freight reduction of 10 per cent can be passed on to the consumers.

The budget should put more thrust towards infrastructure development so that the economy grows at a higher pace. It is a good time for further reforms, which will bring in more economic growth.

There is also opportunity for various IT applications in sectors like education, healthcare, agriculture and e-governance.

I hope that the budget would include more initiative on technology development to enhance the quality of government service to citizens.

 
 
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