Pune's IT sector finds Budget disappointing

Other than a Budget of Rs14,000 crore for the Unique Identification Cards (UID) project, the information technology (IT) sector in Pune is largely disappointed with the Budget presented by finance Minister Pranab Mukherjee.

The techies apprehend that the 2% hike in service tax and excise is what will bother the industry.

Vishal Vyas, vice-president, ITSM, Vinsys said, “The only positive aspect of the Budget is that IT can benefit from the allocation for the UID project out of which 80% will come to the IT sector. Otherwise there is nothing else to be happy about.”

Vikas Khanvelkar, MD, DesignTech Systems Ltd said, “There is nothing exciting or new in the Budget for IT enabled industry. Rather the 2 % increase in service tax and excise duty is bound to affect the micro, small and medium enterprises (MSME) industry adversely. This will put further pressure on the already sluggish auto and manufacturing segment and affect their MSME suppliers adversely. Introduction of goods and services tax (GST) from August 12 is a welcome indication provided the government does not slip up on this new date like the earlier promises.”

The opinion has been seconded by IT professional, Deepak Shikarpur, who said, “This is a growing sector that will get nothing from the Budget. It is pretty disappointing to the entire IT circle. All people will be affected by the increase in service tax.”