MAIT, the apex body representing India’s IT hardware, training and R&D services sectors, welcomed the thrust given in the Union Budget towards sustaining the national economic growth and making it inclusive. The industry body expressed satisfaction for the thrust given to infrastructure development, upliftment of the rural economy and significant outlay for promotion of the social sector, especially education and healthcare. Further, it also appreciated the focus in Budget on New and Renewable energy and announcement of proactive measures for environment conservation.

Congratulating the Union Finance Minister, Shri Pranab Mukherjee, Mr Vinnie Mehta, Executive Director, MAIT, said, “We are glad that the Hon’ble Finance Minister has unveiled the roadmap for GST with a definite date for implementation i.e. April, 2011. Unification of the rate on excise duty and the service tax has been a step in the right direction towards implementation of the GST. The rate of service tax as well as that of excise duty will now be 10%. This will also help mitigate the issue of CENVAT overflow for manufacture of IT products in the country.”

Elaborating on the outcome, he added, “Exemption of Special additional Duty (SAD) on pre-packaged goods for retail is also a welcome step as refunds for SAD were not forthcoming. However, to sustain hardware manufacturing in the country in the long run, it is critical that SAD on the input components be exempted as well.”

“It is heartening that the Hon’ble Finance Minister has recognised the strong potential of the electronics industry and its role in energy generation. In this regard, the announcement of concessional customs duty of 5 percent on machinery, equipment etc. for setting up photovoltaic and solar thermal power generating units is welcome”, added Mehta.

“Lastly, MAIT welcomes the setting up of the Technology Advisory Group under the chairmanship of Mr Nandan Nilekani for monitoring effective IT implementation in projects of National eminence. Timely completion of IT implementation in Government projects is not only critical to the growth and development of the country but also essential for delivering services to the citizens”, mentioned Mehta.

Some of the other noteworthy outcomes of the Union Budget 2010-11 are:

• Extension of weighted deduction on expenditure on in-house R&D from 150% to 200%. 
• Exemption from basic customs duty, CVD and SAD on parts of battery chargers and hand-free headphones for the mobile phone industry until March 2011. This will enable backward integration in the sector.

About MAIT: 

Set up in 1982 for purposes of scientific, educational and IT industry promotion, MAIT has emerged as an effective, influential and dynamic organisation.  Representing hardware, training R&D and associated services sectors of the Indian IT Industry, MAIT’s charter is to develop a global competitive Indian IT Industry, promote the usage of IT in India, strengthen the role of IT in national economic development and promote business through international alliances. Website: www.mait.com.