BUDGET 1999-2000
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BUDGET 98-99
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'There is nothing on attracting FDI to the core sector'

Virat Bhatia

As a foreign investor, I applaud the process of faster clearance and setting up of an authority for implementation. But there is no strategy which describes how the government plans to attract foreign direct investment to the core sector. The Budget has not announced any specific details on either the telecom or other core sectors.

There is nothing on making the current investments more valuable. The single largest challenge is the absence of regulatory reforms conducive for greater investments.

The incidence of duties on the core sector lacks clarity. It is a bit premature to comment because the details are still to come.

I think there is a good deal for housing. Infotech continues to get the attention. Ironically it is treated separately from telecom which is the enabler. This gap needs to be fixed.

I wish there had been greater incentive for tax holidays, external commercial borrowings and also a rationalisation of duties on telecom equipment -- both infrastructure and cellular handsets. This would reduce the cost of operations and increase penetration

Virat Bhatia is managing director of AT&T, India.

Budget 1999-2000

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