'A set of policies for the hardware to grow exponentially is still missing'
Balu Doraisamy, Managing Director, Compaq India
With none of the expected benefits of this budget coming through, an increase in memory prices in the last three months and the falling rupee prices vis-à-vis the dollar, we expect the price of IT products to increase in the coming days. While the Finance Minister has made the zero duty regime on IT products effective only from 2005 and reduced the customs duty to 5% on hardware inputs, this is offset by additional taxation surcharges on the common man that will curtail consumer spending.
Though the Government has indicated that the special excise duty of 16 percent has been reduced on a number of items, we need more clarity on the items to decide the impact on computer and IT products.
Overall, a set of policies for the hardware and communication industries similar to the beneficial policies that allowed the Indian software industry in India to grow exponentially is still missing.
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