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Duty cut on hardware to boost IT
February 28, 2005 15:58 IST
The IT industry on Monday welcomed the budget proposals, saying there was an impetus for growth for the domestic hardware industry with the announcement of zero duty on components for computer and electronics equipment and providing a level playing field by levying a four per cent countervailing duty."This has been a good budget. The lowering of customs duties on hardware components will be a boost for the industry. I suppose the four per cent CVD has been imposed to give a level playing field," Vinay Deshpande, CEO, Encore Software [Get Quote] CEO said.
Deshpande, a pioneer of Simputer, the low-cost hand-held computer, is a former chairman of Manufacturers Association of Information Technology, the body of computer and electronic equipments manufacturers.
Software firm vMoksha Technologies managing director Pawan Kumar said the software industry was happy with the Budget as Finance Minister P Chidambaram had not tinkered with the export incentives valid till 2008-09 prematurely.
Deshpande said the lowering of corporate tax would benefit most of the IT firms in the country.
"The industry had sought more thrust on improving infrastructure. Just like announcing plans to make Mumbai into a regional financial hub, the government should have also included Bangalore as a regional IT hub," Kumar said.
Ravi Uppal, vice-chairman of ABB India, said the firm would benefit substantially from the duty reduction on electronic components.