I do not know whether the industry is happy with the current Union Budget, but this is for sure I am really happy. I do not mind if MAT has been introduced or ESOP has come under FBT. I will surely mind if the PC penetration and the Telecom Revolution in India get stymied or not properly addressed. Some industry honchos say, this year’s Budget has not given due importance to the grassroots IT market. By decreasing CVD or SAD does not address the whole issue and does not also help the affordability of the computing platform. It is really an accepted point, but the issue is where we have created the users of IT.
Are we happy with the Union Budget 2007?

Here is a perspective to the Budget. A little impact on the pricing may not drive PC proliferation. But we need to increase the awareness and understanding of Information Technology, which is only possible if the present level of primary education is given impetus. Some argue why higher education has not been incentivized? The industry is already working with the universities and research organizations, but the user of IT is the layman, who needs to enhance his understanding and reorient his mindset. I believe for using a PC, one need not have higher education. So, I think the importance of the education sector is actually worth it. Secondly, the rural folks who are deprived of the necessary information and who constitute the real India and are responsible for the real growth of India have been given importance this time. That is fantastic! The attention to education and the rural economy in the Budget is expected to create a new class of intellectuals in the near future.
I am unhappy about the fact that our dear channel partners, who are the important conduits of the IT business, have not had much as their share. On the one side, we welcome the increase in the budgetary allocation for e-governance (Rs.719 crore to the Centre and Rs.500 crore to the State Governments) and the decision to computerize the Public Distribution System (PDS) and the Food Corporation of India (FCI). As far as PDS is concerned, the partners who are enrolled with the organizations like DGS&D will be benefited, but in the e-Governance projects, I think no government is allowing the channel partners to supply or take part in any of the tenders. It is the vendors who are directly responsible for fulfilling the deals. So, even if there is a huge increase in the e-Governance projects, I think the partners will get the least opportunity to earn some good bucks.
Sanjay Mohapatra
Editor














