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Budget 2013: Industry reacts

Posted: 01 Mar 2013     Print Version  Bookmark and Share

Keywords:Budget  semiconductor  electronics industry  incubation 

Guruswamy Ganesh, VP and Country Manager, Freescale Semiconductor India Pvt. Ltd.
This year's budget is an extremely moderate with no major shifts in the earlier stance. In realistic terms the budget looks more like a formality with not much initiative on providing big boost to the industry that was expected by the industry leaders.

Zero custom duty on import of plant and machinery for the semiconductor industry combined with the 15 per cent investment allowance for investments of over Rs.100 crores in the plant and machinery is a welcome move to encourage semiconductor and other local manufacturing. This is definitely a good news for the electronics industry. The focus on the development of industrial corridors and ports will also strengthen the Indian manufacturing industry.

The Rs.65,000 crore allocation for education with specific emphasis on Science and Technology, support to incubation projects, and roadmap for skill building across youth, when combined are a powerful set of moves designed to nurture innovation without losing the holistic view.

The finance minister's proposal for postponement of the General Anti Avoidance Rule (GAAR) and inclusion of an external member in the approving panel 'a three-member panel that will be headed by a retired or serving High Court judge and will include an income tax official'is a welcome move and will help in boosting the FDI by building investor confidence in the country.

We were also expecting a specific provisions aiming at the early settlement of increasing number of tax litigations but to our disappointment this was not considered in the Budget.

Suresh C Senapaty, Executive Director & Chief Finance Officer, Wipro
The budget delivers on the promise of fiscal prudence, continues to drive progress on reforms and chalks out initiatives like investment allowance to ensure growth is not ignored. Reforms have progressed in the areas of direct tax code, GST, financial markets regulatory authority for road sector and tax administration reform commission to bring about a tax regime, which will be more proactive in closure of issues rather than litigious. It addresses sustainability initiatives through investments in renewable energy, waste to energy projects in PPP model and has incentives for wind energy projects. The budget has proposed steps towards inclusive growth with measures around financial inclusion, investments in education and welfare of women and children. Overall, the budget is balanced and realistic.

Jaswinder S Ahuja, Corporate Vice President and MD, Cadence Design Systems
We commend Union Finance Minister Chidambaram for making key decisions about critical areas like infrastructure, agriculture and education that will aid in the overall growth of the economy and benefit the common man.

We are pleased to note that the budget provides incentives to the semiconductor industry in the form of import duty waivers on plants and machineries for companies looking to set up domestic fabrication units. The provisions of the National Policy on Electronics announced last year and this incentive are the first steps to kickstarting local manufacturing and accelerating the growth of the Indian electronics eco-system.

More articles on Budget 2013-14
 •  Budget 2013: Highlights
 •  IESA welcomes budget boost for ESDM industry
 •  'Budget 2013 average-good for ESDM sector': F&S
 •  Budget 2013: What industry wants?
 •  Hike customs duty on smartphones, tablets: F&S
 •  IESA seeks speedy implementation of GST
 •  MAIT recommends measures to boost IT hardware.

Sunil Khanna, President & MD, Emerson Network Power
The commitment to bring about constitutional reforms in GST is a positive sign. The Finance Minister's initiative to set apart Rs.9,000 crore towards GST compensation will encourage the states to get on board with GST and hasten reforms. Another welcome aspect is no change in the normal rate of excise duty coupled with revival of investment in manufacturing sector which has been reeling under inflationary pressures. Setting up of a Cabinet Committee on Investment (CCI) to monitor investment proposals and ongoing projects, remove bottlenecks, review stalled projects and improve public-private partnership is welcoming. The budget has also taken growth inducing measures such as encouragement of IDFs and additional investment into industrial corridor projects and JNNURM which are positive signs for the sector. The proposal to introduce 15 per cent investment allowance for high value investments in plant and machinery, and new incentives for renewable energy projects will help the industry keep pace with rapidly changing technology. Overall, it's a relatively measured budget focussing on fiscal consolidation.

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