'No specific measures to boost domestic demand for IT is a disappointment'

Pramod Khera, Managing Director, Aptech Training

The reform process that was initiated in the last couple of budgets is continuing with further rationalization of customs duty. Selective exemptions have been given to certain industries like textiles, tourism & telecom, which will help them. But overall the sentiment has been dampened due to bringing back of dividend tax & imposition of surcharge.

The hardware industry’s demands have been met to some extent, where by the reduction of customs duty to 0% will happen only by 2005 instead of 2003. This will give time to the domestic industry to gear up & face competition from imports. Also, the reduction of duty on import of components & capital goods will benefit the manufacturer. If the benefits are passed on to the customer, we will see the hardware becoming cheaper, thereby helping the sentiment in the IT industry. However there are no specific measures to boost domestic demand for IT, which is a disappointment.

The IT Training Industry is dependant upon the growth of the IT industry as a whole. Overall the budget is quite friendly to the IT Industry & this should add to the improving sentiment amongst the students & help the industry revive this year.

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