Monday, February 28 2005 16:01 Hrs (IST) - World Time -

Bangalore: The IT industry welcomed the budget proposals saying there was an impetus for growth of the domestic hardware industry with the announcement of zero duty on components for computer and electronics equipment and providing a level playing field by levying a four per cent counter veiling duty (CVD).

"This has been a good budget. The lowering of customs duties on hardware components will be boost for the industry. And the four per cent CVD, I suppose, the Finance Minister has imposed to give a level playing field," Encore Software CEO Vinay Deshpande said.

Deshpande, a pioneer of Simputer, the low-cost hand held computer, is a former chairman of Manufacturers Association of Information Technology, the body of computer and electronic equipments manufacturers.

Software firm vMoksha Technologies Managing director, Pawan Kumar said that the software industry was happy with the budget as, Finance Minister P Chidambaram had not tinkered with the export incentives valid till 2008-09, prematurely.

Deshpande said that the lowering of corporate tax would benefit most of the IT firms in the country.

"The industry had sought more thrust on improving infrastructure. Just like announcing plans to make Mumbai into a regional financial hub, the Government should have also included Bangalore as a regional IT hub," Kumar said.

Ravi Uppal, vice-chairman of ABB India, which also does software for its Swedish parent, said, the firm would benefit substantially from the duty reduction on electronic components.