Budget Should Simplify Rules and Procedures

by CXOtoday Staff    Feb 13, 2009

What is your/IT industry’s expectation from the interim Budget this time round? Given the current global recessionary scenario, how can the government help IT companies? What special measures would you recommend the government to take?

The tax holiday given to IT industry contributed significantly to the growth of the IT sector. Given the bleak economic scenario, an extension of the tax holiday, which is set to expire on March 31, 2010, would help sustain many companies that have borne the brunt of the downturn.  The government should also look at increasing domestic IT expenditure through new initiatives which could boost domestic demand.
 
Which other changes in regulation do you think can the government make that will help the IT-ITeS industry?
 
We hope the budget will provide for an extension to the tax holiday for EOUs and STPIs beyond 2009 since this will be especially important for SMEs, who don’t have the scale to operate out of SEZs.
 
Do you think increased government spending on infrastructure, e-governance & IT can help the industry by spurring demand for IT software and hardware?
 
Yes, it definitely can.  Confederation of Indian Industry infrastructure outlook survey quoted that a combination of high interest rates and credit crunch has delayed infrastructure projects by more than 6 months.

We expect the government to increase its proposed spending on infrastructure by additional 15% or more to stimulate necessary demand in the economy. Government can also bring in simplification of rules, regulations and procedures of according clearances for infrastructure projects.

For more responses to the upcoming interim budget, click here.