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'Boost for new and old economies'

Jagi Mangat Panda

It's a great Budget, I wasn't expecting it to be so good because of last year.

As far as my industry is concerned, ie, IT and telecom, we have seen some very good steps like tax reduction for broadband networks, tax holiday extensions and reduction on import duty on IT and the telecom sector. In general, some measures taken would also boost growth not only for the new economy but also old economy (measures like tax holiday on infrastructure, labour law amendment), capital gains tax exemption for primary markets, etc. Also the cut in dividend tax.

There is no tax on ISPs, at least not yet.

At the end of the day, whether it is new economy or old, what matters most is the productivity of labour and capital, and hopefully this Budget will help this cause.

I think the Budget will also boost software exports.

Jagi Mangat Panda is director, Ortel Communications Ltd

Budget 2001

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