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Technology Stocks : Satyam Infoway Ltd-(Nasdaq:SIFY) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (961)	2/29/2000 8:37:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 1471

View From the Top- R Ramaraj (CEO,Satyam Computers) On the budget FEBRUARY 29: While it was heartening that the budget began with the stated intent of poverty alleviation through a focus on knowledge industries and infrastructure, it was disappointing to note that here were no specific initiatiaves to enable this. For example the Internet industry could have been given infrastructure status, there could have been substantial reductions in duties on newtworking and communications equipment, zero per cent duties on set top boxes and so on. If the Internet is to take off in India with its potential to radically impact all strata and sectors of the Indian economy then policy measures, which could result in rapid acceptance of this medium, is imperative. While it will be a long time before the average Indian can afford a regular PC, policy initiatives around cheaper devices would have been apropriate. Having said that, Budget 2000 was extremely tricky for the finance minister as he was faced with the complex task of raising revenues drastically in order to tackle the alarmingly large fiscal deficit, which has touched 5.6 per cent, without allowing the growth impetus in the economy to slacken. The finance minister is targeting a growth rate of 7-8 per cent with an attempt to rationalize excise duties, reduction of customs duties especially for items used for electronic manufacture, corporatisation of public utilities like ports, airports and telecom among others. What seems to be glaringly absent is a deliberate attempt to tackle the burgeoning budget deficit - especially on the expenditure side. It is evident that the government is betting on the growth impetus continuing which could lead to increased revenues. In deciding to reduce subsidies on fertilizers, food and also reduce the concessions to exports - it seems to have bitten the bullet - it will be extremely commendable if it could see these through the political process. The budget could have galvanized even further the emergent growth sectors of Internet and IT, Communication, Electronics, Drugs and Pharma but the policy initiatives seem mixed except for clear reduction in customs duties for electronic items used in Computer manufacture. Clearing the way for Venture Capital funds to operate without hindrance is extremely welcome but the real lacuna here is no announcement has been made on tax sops for ESOPs which could have gelled extremely well with the Venture Capital initiative.........(Continued) expressindia.com