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'India will continue on a high growth path'

Manoj Chugh

It's a very positive Budget. I believe it will promote growth. We see an increase in capex spending on account of the reduction in direct taxes and a rationalisation of indirect taxes.

Because of the need for Indian organisations to e-enable themselves for competitive advantage, we believe that investments will go into building information systems and Internet infrastructure.

There will be a marginal reduction in prices of computer accessories as customs duties surcharge on all items has been removed.

The IT sector have always been a one to invest in. Now is as good as any.

The impact of the Budget will be positive. We will see many organisations e-enabling themselves, thereby providing opportunities for the growth of the domestic software industry. As organisations Internet-enable their supply chain management or HR practices, deployment of world class software packages and applications will see high growth. Also, easier overseas acquisitions will see Indian companies move up the value chain and also help move to yet another high growth curve beyond organic growth.

Our expectation from the Budget was that there would be significant reduction in customs duties of products which help create Internet infrastructure and encourage its usage. Duties on specific telecom and IT products have come down to 15 per cent. Our expectation was that perhaps this should have come down by a few percentage points more.

The Indian economy will react positively. There is a tremendous optimism and it is expected that the GDP growth would be 7 per cent. India will be able to hold its own. I do not see the US slowdown directly impacting India. India will continue on a high growth path.

Manoj Chugh is President (India and SAARC), Cisco Systems

Budget 2001

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