True to our expectations, we did not see any major announcements in the budget for the IT segment. However, I would say that the budget has largely been positive for the IT sector. The biggest disappointment for the IT sector has been the lack of a decision on extending the tax holiday for STPI and EOU units. However, there is still a year's time before the sops expire and I expect it to be favourably sorted out in the days to come. Domestic IT can expect a large investment due to the announcement of the usage of Smart Cards in the Public Distribution System, investment support for State WANS and Data Centers. Further concessions, to the broadband services and equipment players in the form of lowering of levies and service taxes on the convergent networks roll out, are a positive. Support to education in the form of the new IITs, 6000 high caliber learning centers will also add to the knowledge economy that India is fast moving towards becoming. The levies on software is the only sour note, whose impact on domestic players and on piracy will have to be seen in the days to come

Rating : Not Rated