Post-Budget quote from MD & CEO of Tech Mahindra CP Gurnani:
We welcome the new government’s first budget of structural reforms aimed at reviving growth and connectivity though there’s no clarity on how the government plans to cap the big fiscal deficit which is pegged at 4.5 per cent for FY 15. The finance minister’s decision to revive MSMEs is a step in the right direction as MSMEs are the backbone of any economy. We at Tech Mahindra feel that the only way forward for the IT industry is ‘Collaborate, Connect and Co-Create’ and this thought seems to echo by the government as the budget proposes an allocation of Rs 7,060 crore this financial year for developing 100 ‘smart cities’ in the country. Further, Jaitley’s Rs 500 crore National Rural Internet and Technology Mission aims at connecting the rural and urban India and thus connect the nation with technology. But in a bid to halt a two-year spell of weak growth, the government seems to have announced some incremental steps to boost capital spending and reassuring foreign investors on fair treatment. Though we feel the government should also have pondered over renegotiating tax treaties, facilitating cross border transfer pricing adjustments, for Indian MNCs to penetrate emerging markets in IT.