Post-Budget Reaction by Mr. A K Bhuwania, Chairman at VXL Instruments
By looking at this year’s Union Budget, I can say that India’s economy is about to take off on a faster growth trajectory. I feel that overall the budget is positive for all industries — healthcare, automobile, IT and others. It is encouraging to see that the government has reinforced its continuing focus on leveraging technology for development goals. Other announcements like electronic Trade Receivables Discounting System (TReDS) for SMEs, cashless economy, expanding direct benefits through JAM etc. are also a good sign. Furthermore, for technology start-ups, the FM has acknowledged the need of addressing concerns such as the need for a more liberal system of raising global capital, providing incubation facilities and easing norms for doing business. This budget clearly points that ‘Make in India’ is going to gain momentum this year. Reduction in royalty on technical services from 25% to 10% will encourage technology transfer to India. However, the increase in service tax is something that’s going to bother the industry as it is bound to increase the prices of many tech services.
