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Budget 2008-09

IT SECT OR

Presented By:
Mandar Joshi
Nisha Nair
Growth of Software Industry in
India
Effect of stronger rupee on IT,
BPO & KPO sector
Decline of sales
Decline of
growth to 27%
average net
from 45%
profit growth to
22% from 48%

Failure to meet export More imports less


target by US$ 15-20 exports
billion. Fall of salary
growth to
25% from
64%
Solutions from experts
Reduce its dependence on
conventional export markets

Negotiate their contracts in rupee


rather than dollars

Move up the value


chain
Slowing down the rate of
salary hike
The government should give benefits
in the form of tax sops
Get a lot more India-
centric
Tap hitherto untapped
markets
Draw in work-force from the fringe
states
Contribution of IT sector to
exports and GDP

Source: Financial
Express
Budget 2007-08
 Allocation for e-  Highlights of Central
governance to increase Plan:
from Rs.395 crore to Ø 285 crore for National
Rs.719 crore Informatics Centre.
 E-governance action Ø 719 crore for e-
plans at state levels to Governance programme
increase from Rs.300 to improve efficiency,
crore to Rs.500 crore. convenience, acc-
 Rs.33 crore to be essibility and
provided for a new transparency in
scheme of manpower Government.
development for
software export
industry.
Source:www.indiabudget.n
ic.in
Budget 2008-09
 Allocation to the department  Highlights of Central Plan:
of IT enhanced to Rs.1680 Ø 400 crore for National
crore in 2008-09 from Informatics Centre.
Rs.1500 crore in 2007-08
Ø 800 crore for e-Governance
 Two schemes for establishing programme.
100,000 broadband internet-
enabled common service Ø 100 for establishing the
centres in rural areas and National Knowledge Network.
SWAN with central assistance Ø 45 crore for Manpower
under implementation Development initiatives.
 Rs.75 crore provided for the Ø 33 crore for Cyber Security.
common service centres
 Rs.450 crore provided for
SWAN
 Rs.275 crore for the State
Data Centres

Source:www.indiabudget.n
ic.in
2007-08 Budget V/S 2008-09
Budegt

Source:
www.indiabudget.nic.in
Our views
•The hike in excise duty from 8% to
12% on packaged software and
addition of customised software in
the service tax net is expected to
negatively affect application
development players in the
domestic software industry.

•With no comment on extension of


IT tax exemption(sections 10A and
10B),the overall impact is expected
to be marginally negative.
Thank You

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