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Infosys hails Sinha for granting sops to IT industry

Infosys Technologies Ltd, the Bangalore-based global software company, has hailed Union Finance Minister Yeshwant Sinha for meeting the major demands of the Indian software industry.

"The government has accepted the long-pending demand for a two-way fungibility of ADRs/GDRs of flow-back shares. Ambiguities in section 10A/B of the IT Act have also been removed. Reduction of the dividend tax from 20 percent to 10 percent is encouraging. The increase in FII limit up to 49 percent is also welcome," declared T V Mohandas Pai, Infosys director for finance and administration.

This Budget is a growth-oriented one and is a continuation of the second generation reforms. Most of the requests of the software industry have been met. The Budget will also increase the competitiveness of the Indian industry. Increased focus on primary and higher education along with the national student loan programme would help India in becoming a knowledge economy.

Lowering the administered interest rates on savings would reduce the cost of capital. Exemption from excise duty for the food-processing industry will help in widening the market and ensure good prices to farmers.

"Increased spending on IT by government departments and banks will bring in efficiencies and expand the market. Lower import duty on computers will reduce the cost and help in computerisation," Pai affirmed.

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