Mr. Ramesh Lognathan, MD and VP (Products), Progress Software India says –

IT industry would expect the government to extend the STPI scheme for a few more years to help tide over the current crunch the industry is facing. The tax relief will help take some pressure off the companies that are already facing reduced business, severe pricing pressures and both driving profitability concerns. This becomes very critical specifically for SME organizations.

From a medium term standpoint, I would like to see the budget also encouraging domestic software companies to target more of the domestic market. Not so much as a protectionist measure, but more as a measure to encourage more active participation. I would also expect government to encourage (and stimulate) IP creation. Pushing the industry beyond the present outsourced services focus to create packaged software and products would also help.

Mr. M Narsimha Rao, President HYSEA (Hyderabad Software Export Association) says-

As an Industry we are positive about the budget which will be presented in July. We are looking for policy interventions to help regain the momentum and bring back the high growth rates we have seen in the industry. We need the Government to enable higher investments into Infrastructure development, Primary & Higher education, in strengthening security and to encourage Innovation, R&D and Intellectual Property creation. We need a healthy eco-system of SMEs in this sector and some specific policy interventions to help the smaller companies would immensely benefit the industry. In the current environment we are also looking for schemes which encourage higher job creation and we in the IT/ITES industry have tremendous job creation potential. Specifically for the short term, we need the Government to extend the Tax benefits under the STPI scheme for a further period of 10 years & allow greater freedom in movement of existing business into SEZs for IT/ITES companies.

Mr. V Laxmikanth, MD, Broadridge Financial Solutions India Pvt Ltd says -

From a macro level, I would look at the Union Budget focusing on allocation of appropriate resources and initiation of policy changes wherever required that should make it possible for India to get back to its GDP growth of 8% to 9%. Containing the fiscal deficit should be another important priority for the government at this stage. This budget should also consider increasing spend on infrastructure – primarily power and transport. For export oriented industries, while stimulus packages have been provided for, keeping in mind the global meltdown appropriate benefits need to extend to enable the Indian exports become profitable. This will in turn generate domestic employment opportunities which were lost due to the sharp decline in exports in last 1 year. For the IT / ITES industry the STPI tax exemption status should be continued for a few more years.

This budget will really be very crucial for the “aam aadmi” especially the middle class who have been impacted by the galloping consumer prices, relief should be provided to them by lowering excise duty on essential items of mass consumption. For senior citizens who have been impacted by the low interest rates in recent years, there should be either higher IT relief or increase in interest on savings instruments.