Presentation Transcript
Budget 2008-09 :IT SECTOR Budget 2008-09 Presented By:
Mandar Joshi
Nisha Nair
Growth of Software Industry in India :Growth of Software Industry in India
Effect of stronger rupee on IT, BPO & KPO sector :Effect of stronger rupee on IT, BPO & KPO sector Decline of average net profit growth to 22% from 48% Decline of sales growth to 27% from 45% Fall of salary growth to 25% from 64% Failure to meet export
target by US$ 15-20 billion. More imports less exports
Slide 4:Solutions from experts Slowing down the rate of salary hike Reduce its dependence on conventional export markets Tap hitherto untapped markets Negotiate their contracts in rupee rather than dollars Get a lot more India-centric Move up the value chain Draw in work-force from the fringe states The government should give benefits in the form of tax sops
Contribution of IT sector to exports and GDP :Contribution of IT sector to exports and GDP Source: Financial Express
Budget 2007-08 :Budget 2007-08 Allocation for e-governance to increase from Rs.395 crore to Rs.719 crore
E-governance action plans at state levels to increase from Rs.300 crore to Rs.500 crore.
Rs.33 crore to be provided for a new scheme of manpower development for software export industry. Highlights of Central Plan:
285 crore for National Informatics Centre.
719 crore for e-Governance programme to improve efficiency, convenience, acc-essibility and transparency in Government. Source:www.indiabudget.nic.in
Budget 2008-09 :Budget 2008-09 Allocation to the department of IT enhanced to Rs.1680 crore in 2008-09 from Rs.1500 crore in 2007-08
Two schemes for establishing 100,000 broadband internet-enabled common service centres in rural areas and SWAN with central assistance under implementation
Rs.75 crore provided for the common service centres
Rs.450 crore provided for SWAN
Rs.275 crore for the State Data Centres Highlights of Central Plan:
400 crore for National Informatics Centre.
800 crore for e-Governance programme.
100 for establishing the National Knowledge Network.
45 crore for Manpower Development initiatives.
33 crore for Cyber Security. Source:www.indiabudget.nic.in
2007-08 Budget V/S 2008-09 Budegt :2007-08 Budget V/S 2008-09 Budegt Source: www.indiabudget.nic.in
Our views :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 :Thank You