Budget raises India's profile, says TCS chief

The union budget for 2015-16 was far sighted and bold to raise the country's profile as an investment destination, a top official Tata Consultancy Services (TCS) said Saturday.

"The budget aims to make structural changes in taxation for driving higher corporate investment and sets a roadmap of reform over the next four years," TCS chief executive N. Chandrasekaran said in a statement from Mumbai.

However, he termed increase in surcharge and service tax by two percent a cause for concern, saying it would impact the economy in the short-term.

Rating the budget at 8 on 10, he said the government's commitment to Digital India would unleash opportunities for the IT sector, while encouraging fund managers to relocate to India will drive greater integration of the country into the global financial services economy.

"Similarly, use of financial products and services by growing number of people and monetisation of gold will deepen the financial services sector," he added.

Lauding the government's objective to accelerate the economy, Wipro chief financial officer Suresh Senapaty said the budget's focus on ease of doing business would spur growth and development.

"Thrust on employment generation in manufacturing is welcome. The budget has accorded due regard to technology," Senapaty said in a statement here.

He said the budget lays stress on adopting IT for governance in plugging subsidy leakages and in tax administration, while supporting technology innovation by rationalising tax on royalty.

Manipal Global Education chairman and former Infosys director T.V. Mohandas Pai said Finance Minister Arun Jaitley had acknowledged the role and status of the IT industry as well-regarded and world class, with $150 billion revenue and four million people employed across the country.

Another former Infosys director V. Balakrishnan told IANS the removal of SAD (special additional duty) on IT products would address the inverted duty structure, while 15 percent reduction of tax on fee for technical services facilitate more technology transfer in the country.