Post Budget Reaction From Mr. S. Rajendran, CMO, Acer India

Mr. S. Rajendran, CMO, Acer India.

unnamed“We’re happy and welcome this positive budget which has defined a clear roadmap on many aspects addressing the need for stability in policy framework. Some of the bold announcements made by the Finance Minister and have a direct bearing on our sector – infrastructure spending, direct transfer to beneficiaries, committed date of April 01, 2016 for Goods & Service Tax (GST) and enhanced social security thrust will convey a reassuring message to potential overseas investors.

However, we’ll need to review the provisions before any predictions could be made on the impact they will have on the sector. IT industry expected more from the budget.

While some progress has been made towards addressing the inverted duty structure and dual Central Value Added Tax (CENVAT) structure for encouraging local assembly/manufacture of tablets and smartphones, keeping out PCs with the attendant increase in Excise duty/CENVAT from 12.36% to 12.5% in addition to the jump to 14% in service tax bodes ill for increasing demand for this category which is already suffering from woefully low penetration rates.

We are eagerly hoping that with the clear direction spelt out, there would be more reform oriented policies and measures as the year progresses so the momentum for an accelerated GDP growth continues.”