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Sector Focus : Information Technology

Information technology: Post-budget

Information technology: State of the industry (2000-01)

Information technology: Tariffs, prices and landed costs

	Tariffs (per cent)
	Customs		Excise
	2000-01	2001-02	2000-01	2001-02
Ink cartridges, ribbon assembly etc.	32.6	30.0	16.0	16.0
Set top boxes	32.6	30.0	16.0	16.0
Cables (less than 80 V)	26.9	19.6	16.0	16.0
Digital still video camera	26.9	19.6	16.0	16.0
Computers and peripherals	21.2	19.6	16.0	16.0
PPCBs	21.2	19.6	16.0	16.0
Connectors for IT hardware	21.2	19.6	16.0	16.0
Floppy diskettes	21.2	19.6	16.0	16.0
Key switches for key boards	21.2	19.6	16.0	16.0
Parts and accessories of computers (excluding PPCBs)	9.7	9.2	16.0	16.0
Stepper motors	9.7	9.2	16.0	16.0
Parts of floppy diskettes	9.7	9.2	16.0	16.0
Microprocessors for computers	4.0	4.0	16.0	16.0
Application and system software	0.0	0.0	0.0	0.0
FDD; HDD; CD-ROM drives and other storage devices	4.0	4.0	16.0	16.0
Integrated circuits and micro assemblies	4.0	4.0	16.0	16.0
Deflection components for use in computer monitors	4.0	4.0	16.0	16.0
CD-ROMs	4.0	4.0	16.0	16.0

PPCB: Populated printed circuit board; FDD: Floppy disk drive; HDD: Hard disk drive;
CD-ROM: Compact disk-read only memory

Source: CRIS INFAC

• According to NASSCOM, revenues of the Indian software industry are expected to increase by 46 per cent.
• Software exports are expected to increase by 56 per cent, and revenues from the domestic market are expected to increase by 24 per cent.
• Sales of PCs are expected to increase by 25 per cent, as compared with 37 per cent in 1999-2000.

Information technology: Budget impact

Impact factors

Company name	Impact	Impact factors
H C L Technologies Ltd.	Pos	A,C
(583.40, 622.65)
Hughes Software Systems Ltd.	Pos	A,C
(796.55, 831.50)
Infosys Technologies Ltd.	Pos	A,C
(5,695.35, 6,258.40)
N I I T Ltd.	Pos	A,C
(1,182.25, 1,242.60)
Satyam Computer Services Ltd.	Pos	A,C
(307.65, 347.00)
HCL Infosystems Ltd.	Pos	A,B,C
(211.70, 221.10)
Wipro Ltd.	Pos	A,C
(2,368.65, 2,544.80)

Notes:
Figures in brackets indicate the closing share prices, on February 27, 2001 and February 28, 2001, respectively.
Pos= positive.

Source: CRIS INFAC

A: Tax exemption for onsite software services, grant of tax holidays under section 10A/10B in spite of a change in ownership, and an expected increase in computerisation in government departments, PSUs and banks by March 2002 are expected to have a positive impact on the industry.

B: The removal of the surcharge of 10 per cent on the customs duty is expected to result in a marginal decline in the prices of IT hardware products.

C: The reduction of surcharge on corporate tax, from 13 per cent to 2 per cent is expected to have a positive impact on companies.

Rediff-CRISIL Budget Impact Analysis
Budget 2001

Disclaimer: CRISIL has taken due care and caution in compiling this report. Information has been obtained by CRISIL from sources which it considers reliable. However, CRISIL does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. CRISIL is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of its web site.

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