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.