"For the year 2012-2013, the Union Budget should address the challenges of keeping the economic engine running in the midst of the global uncertainties that can have a ripple effect in India. Closing of the fiscal deficit without impacting the GDP growth rate; promotion of inclusive growth initiatives are some of the key areas that we hope the budget will highlight.
To this effect, technology can play a big role in helping India overcome infrastructure challenges as well as resource deficiencies that we face.
"For the semiconductor industry, the coming year will be characterized by opportunities and challenges, especially given the push towards the formation of a National Policy on Electronics to help India kick start its nascent local manufacturing industry and become a global hub of excellence for the design and production of electronic goods.
To encourage and stimulate the domestic industry and promoting locally designed products, there is a need for tax exemptions and R&D grants. Some of the pivotal issues that need to be addressed in the 2012-2013 Union Budget centre around semiconductor design, high-tech manufacturing, encouraging pre-competitive research, and amendments to tax and duty structures.
Favorable policies addressing these areas will support the domestic semiconductor industry to compete aggressively in the global market, as well as encourage the growth of the local market.
"There is need to push forward the much-needed reforms and pending legislations. The Government needs to take urgent steps in the passing of the long overdue Companies Bill. The early implementation of the Direct Taxes Code and the Goods and Services Tax are also important."