Budget Reactions

Raj Saraf



CMD, Zenith IT Group

The 2001 Budget has been very bad as far as the industry is concerned. Pramod

Mahajan had announced that 2001 would be the year of hardware, but the duties

are the same. Nothing has changed.

Balu Doraisamy



MD, Compaq Computer India

The hardware industry has been looking forward to the rationalization of

tariff with a reduction in excise duty to 8% from the existing 16%, and

abolition of the 4% SAD. But the drop in surcharge results in a reduction of

only 1.8% on finished goods. The impact on raw materials will be a negligible

0.5% reduction.

Deepak Kamdar



director, business division, Datapro Group

The budget is much more than what was expected. I am glad that this Budget

has not used populist measures like Mamata Banerjee’s Railway Budget.

Niraj Gupta



director, south Asia, FLAG Telecom

Given the circumstances, it is a smart Budget. The facilities and loans

support for education rural and other educational institutions, including the

IITs, will go a long way in the flowering of Indian intellect.

Manish Aggarwal



director marketing, Vintron Infomatics

There has been no change in the structure of the custom duty except the

removal of surcharge which is not going to have any noticeable effect.

Pravin Gandhi



director, Infinity Technology Investments

There is nothing on the direct measures for the VC industry. It should have

allowed Indian funds to invest abroad as well some measures towards creating

liquidity for the mid cap segment.

CP Gurnani



COO, HCL Perot Systems

Exempting tax on on-site services in this year’s budget will help business

to become more India centric. This will boost the industries and help mop up

funds through our capital markets.

NY Prasad



COO, Ingram Micro India

I am extremely disappointed. There has been no effort to give impetus to the

HW sector. The Budget has given no clear direction to the rationalization of

tariffs for dual application items. It is surprising that policy-makers believe

they can make the SW sector competitive and take IT to the masses without a

corresponding action plan for hardware as well.