Level-playing field for technology: Ravinder Zutshi

UNION BUDGET 2005-06: COMMENTS

The finance minister has taken steps to ensure a level-playing field and competitive domestic manufacturing in the electronics and technology sector.

The reduction of peak Customs duty from 20 to 15 per cent is a step in the right direction. The rationalisation of the inverted duty structure on raw materials and capital goods is an encouraging move.

The reduction of excise duty on air conditioners from 24 per cent to 16 per cent is a welcome step as air conditioners today are an essential part of people's homes. The reduction of depreciation on plant and machinery and tax on perquisites for employees will negatively affect companies like ours.

Overall, we feel that the Budget will be good for the economy, especially with the proposed banking reforms, thrust on savings and the reduction of the fiscal deficit to 4.3 per cent of the GDP. Measures towards improving infrastructure especially highways and in rural areas, will give a good boost to improving the overall economic health of the country.