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Wipro terms the Budget fantastic

Fakir Chand in Bangalore

Wipro Ltd, another Bangalore-based major IT company, termed the Union Budget for 2001-02 as fantastic and friendly to all sections of industry and society.

"It has an extremely positive approach to boost our economy, encouraging investment in infrastructure, be it port, power, telecom or road, e-enabling government operations and bringing labour law changes," declared Suresh Senapaty, Wipro's corporate executive vice-president.

The removal of surcharge, halving of dividend tax, increasing in foreign investment limits to 49 percent, continued reform on debt securitisation, transfer pricing policy, and downsizing government expenditure are moves which will give a kick start to the economy and the capital market in general, he said.

"The IT sector is particularly happy. There is continuity and clarification on all issues now. Duty rates have decreased and the withdrawal of surcharge on services in India is welcome. Onsite income from services continues to be exempted from tax."

There is also relaxation in investment in foreign companies up to $ 100 million from ADR/GDR proceeds. The government schemes for student loans for higher education, upgradation of Roorkee University to an IIT, and tax incentive for contribution to engineering colleges will augment intellectual capital for the IT industry.

On the negative side, the validity of manufacturing computers becomes questionable with duty reduction in finished goods and the overall increase in duty on components, he said.

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