Budget ‘interesting’ for IT sector: GTech

Group of Technology Companies in Kerala (GTech) has said the Union Budget 2013-14 is ‘interesting’ for the IT industry.

This is because of the thrust it puts on innovation, incubators and the micro, small and medium sector enterprises (MSMEs).

Gtech is disappointed that long-pending demand for tax sops in Tier II/III cities has been rejected, said Anoop Ambika, Secretary.

But it wholeheartedly welcomes continued grant of benefits to MSMEs even after three years of graduation.

Classification of angel investors as category I venture capital funds was another laudable initiative. Allowing SMEs to list informed investors, not essentially through initial public offering, was another, Ambika said. Funding of incubation centres at educational institutions being treated as corporate social responsibility as per new Companies Bill is a huge step in promoting incubators.

GTech also hailed the thrust on electronic manufacturing and semiconductor wafer fabs.

This will create opportunities in embedded systems, enterprise resource programmes and customer relations management.

Incentivising investment avenues will make people move away from dead investment instruments like gold. Introduction of inflation-indexed bonds too was welcome.

Clarity on taxation is something that the industry still expects even though a clear definition of FII Vs FDI has been provided, Ambika said.

The budget is also right in its stress on rural areas, skill development and huge investments in education and health.

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