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Union Budget-2009
Pre budget expectations of leading
players from different industries
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Hyderabad|India|July'2009: The budget session of Parliament will
commence from July 2 and the General Budget for 2009-10 will be presented
to the Lok Sabha on July 6.The session, which will start from July 2 with
the presentation of the Economic Survey, would last till August 7.
The Government hopes to pass the budget before July 31 to avoid the need
for a fresh vote-on-account.Presentation of the Economic Survey, the
Railway Budget and the Union Budget would be followed by a discussion on
the demands for grants of select ministries. Presented below are Pre
budget expectations of leading players from various sectors of Hyderabad.
~Hospitality Industry Expectations~
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Mr. Jaideep
Anand, GM, Ista Hyderabad says -
"The budget 08 had not been very rewarding for
the tourism/hospitality sector so expectations
from Budget 2009 are indeed very high. Since
the sector is anyways going through a bad
phase with the ripple effect of global
slowdown and 26/11 attacks, we are looking at
receiving tax rationalization and recognition
as an industry which will make it easier for
the sector receive funding and thus grow at a
higher rate. Hospitality industry is key
growth driver for the economy as it brings
highest forex to the country and through its
multiplier affect it supports business and
infrastructure, generates employment and also
boosts tourism. Though there are tax benefits
for the star hotels which are provided by
various state governments at their level,
there is no policy of tax exemption or tax
holidays for the hotels from the center" |
Mr
JaideepAnand, GM, Ista Hyderabad
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~Telecom
Industry Expectations~
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Dr Debasis Chatterji, CEO Netxcell
Ltd |
Mr. Debasis
Chatterji, CEO, Netxcell Limited says:
"Mobile
industry pays around 20-25% direct and indirect
taxes the load for which is ultimately passed on
to the subscriber but if this tax is reduced, it
would form a catalytic factor for the industry
which currently is growing at the rate of 40-45% .
If we want to achieve another 10% growth the
government should cut the taxes for the industry
which will help in increasing the subscriber base
and eventually generating more revenues. We would
also expect the government to distinguish
profitable PSUs to generate additional cash which
will reduce the fiscal deficit.
The Indian
telecom market has emerged as one of the fastest
growing telecom markets in the world.
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The telecom
industry has also fortunately not been adversely
impacted by the global meltdown however to keep
the momentum going strong for this sector, we do
hope for the new budget to liberate the telecom
industry in India from being subjected to
multifarious taxes / levies.
The telecom
success story is essentially due to the much emphasized mantra of
affordability with quality. The telecom industry in India is now
looking forward to a greater success story which could definitely
happen with prudent fiscal legislation and administration." |
~IT Industry
Expectations~
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K Pradeep,FCA, LLB
Partner, Pradeep &
Prasad, Chartered Accountants |
K Pradeep,Partner,
Pradeep & Prasad, Chartered Accountants says "Now that the new
government is in place, the expectations are high in terms of how Mr.
Singh & team are going to respond to the current economic situation.
The world had just seen a drastic recession and the country is looking
forward for a very friendly and supportive policy directions. Sometime
back, professionals and experts thought that India is immune to the
recession in US, but I feel that we got hit to a major extent.
From an overall industry perspective, there are a few key aspects
which need to be looked into. Availability of credit is vital to
stimulate growth and this has been an issue even though the banks have
been flush with funds. Banks are reluctant to lend and are treading
very cautiously when lending. They must be encouraged to provide
credit at reasonable rates for both capital expenditure and consumer
demand to get a boost. This will also have a positive effect on
entrepreneurial energy that can be unleashed to create significant
employment opportunities. Today cash is king.
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Next comes
the infrastructure. The government must allocate funds for spending on
infrastructure and create an environment where more people want to
work and invest in India. The India story today is a compelling one in
many respects but it always gets diminished by lack of proper
infrastructure and facilities. We need good airports, good road
network and superior communications to forge ahead.
From the perspective of the IT and ITES industry the wish list is a
fairly large one. The least expected of this government is that there
is a need to extend the tax exempted status of the industry. Under
normal circumstances the time given by the government would have been
adequate but in the current economic situation an extension of at
least 2-3 years will be a great impetus for the struggling industry.
In a country where there is no social security in place the government
needs to look at some way to support the people who have suffered job
losses. This can be in terms of support through health insurance and
easy loans that encourage people to get started on their own.
Today, consumer spending has come down. Inflation is very low and
there is not much of economic activity. We are passing through
difficult times but have ample capabilities to come through this. The
government needs to be a facilitator and a sponsor in this process and
the budget will be an apt place to get started. Let us see what is in
store for us this fiscal".
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Ramesh Lognathan, MD, Progress India |
Mr. Ramesh
Lognathan, MD and VP (Products), Progress Software
India says "IT
industry would expect the government to extend the
STPI scheme for a few more years to help tide over
the current crunch the industry is facing. The tax
relief will help take some pressure off the
companies that are already facing reduced
business, severe pricing pressures and both
driving profitability concerns. This becomes very
critical specifically for SME organizations.
From a medium term standpoint, I would
like to see the budget also encouraging domestic software companies to
target more of the domestic market. Not so much as a protectionist
measure, but more as a measure to encourage more active participation.
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I would also
expect government to encourage (and stimulate) IP
creation. Pushing the industry beyond the present
outsourced services focus to create packaged
software and products would also help".
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Mr. M Narsimha Rao, President HYSEA (Hyderabad Software Export
Association)
says-As an
Industry we are positive about the budget which will be presented in
July. We are looking for policy interventions to help regain the
momentum and bring back the high growth rates we have seen in the
industry. We need the Government to enable higher investments into
Infrastructure development, Primary & Higher education, in
strengthening security and to encourage Innovation, R&D and
Intellectual Property creation.
We need a healthy eco-system of SMEs in this
sector and some specific policy interventions to help the smaller
companies would immensely benefit the industry. |
Mr. M Narsimha
Rao, President HYSEA |
In
the current environment we are also looking for schemes which
encourage higher job creation and we in the IT/ITES industry have
tremendous job creation potential. Specifically for the short term, we
need the Government to extend the Tax benefits under the STPI scheme
for a further period of 10 years & allow greater freedom in movement
of existing business into SEZs for IT/ITES companies.
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Mr.
V Laxmikanth, MD, Broadridge Financial Solutions
India Pvt Ltd says
- From a macro level, I would look at the Union
Budget focusing on allocation of appropriate
resources and initiation of policy changes
wherever required that should make it possible for
India to get back to its GDP growth of 8% to 9%.
Containing the fiscal deficit should be another
important priority for the government at this
stage. This budget should also consider increasing
spend on infrastructure – primarily power and
transport. For export oriented industries, while
stimulus packages have been provided for, keeping
in mind the global meltdown appropriate benefits
need to extend to enable the Indian exports become
profitable. This will in turn generate domestic
employment opportunities which were lost due to
the sharp decline in exports in last 1 year. For
the IT / ITES industry the STPI tax exemption
status should be continued for a few more years.
This budget will really be very crucial for the
“aam aadmi” especially the middle class who have
been impacted by the galloping consumer prices,
relief should be provided to them by lowering
excise duty on essential items of mass
consumption. For senior citizens who have been
impacted by the low interest rates in recent
years, there should be either higher IT relief or
increase in interest on savings instruments. |
V Laxmikanth, MD, Broadridge India
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Reachout's News Bureau
July' 2009
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