Union Budget 2008-09 - India

The Indian IT and ITeS industry across all sectors on Friday felt let down by the national budget for 2008-09, finding little in it to boost growth prospects.

The National Association of Software and Services Companies (Nasscom), the leading IT industry lobby, indicated extreme disappoint as Finance Minister P. Chidambaram did not comment on extending the Software Technology Parks of India (STPI) scheme.This was critical for SMEs and BPOs.

The scheme, offering tax sops for the industry, expires March 31, 2009.

The business process outsourcing industry said the budget has ignored its demands.

“The budget could not delight for the Indian BPO industries,” Business Process Industry Association (BPAI) President Sam Chopra said.

The industry, in its recommendations to the Finance Ministry, mentioned the withdrawal of MAT for initial 5-10 years for new upcoming BPO units, extension of STPI schemes and abolition of FBT on ESOPS.

“None of these issues seemed to have been addressed at the session,” he said. — PTI