Budget reaction from Amar Babu, Managing Director, Lenovo India

Amar Babu, Managing Director, Lenovo India

From a macro view, the budget does look promising. The focus on
agriculture, technical education, rural development and infrastructure
segments in India will lead to overall development and increase in our
GDP. But, I find the budget addressing only 60% of the issues. The
6.7% GDP in the current economic scenario is indeed good compared to
other emerging countries.

From a PC industry point of view, there is no direct benefit as such -
the Government could have introduced programs for PC affordability and
broadband implementation. The budget also lacks support for medium and
large enterprises as corporate taxes remain same.

On the positives, we welcome the Government initiatives like the
Unique ID programme and Mission in Education through ICT. The
exemption on packaged software will reduce the cost of technology to
the end customer. This will not only help the IT industry, but also
support the anti-piracy movement.

Abolition of fringe benefit taxes, removal of the surcharge and
increase in tax exemption limits in personal income tax are good moves
to ensure more money in the hands of the common man during a
recession. Also, presumptive taxation benefits and other social
reforms will drive growth of small business in India - this is a boost
to entrepreneurs, especially those in non-metro cities. These
proposals are in the right direction for the benefit of the PC
industry - consumers would be more willing to spend on PCs, while
small businessmen will be encouraged to invest in computing solutions
including PCs and legal software.

Cheers!

Pooja Srivastava

senior account executive

Text 100 Public Relations

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