Broadbandindia Magazine

As the world recovers from the worst recession since the 1930s, both challenges and opportunities face India, one of the fastest growing  economies in the world today. The economy of the country is currently in a better situation than the last fiscal 2009-10. Like every other budget, this budget too had its own highs and lows for different sectors. It looks like the Finance Minister, Mr Pranab Mukherjee, had a soft corner for the Infotainment Industry in India. In his budget speech, he proposed various points that go all way in the favour of the mobile industry.

Telecommunications which has emerged as one of the key sectors responsible for India’s resurgent economic growth did not see a favorable budget too. It was surprising to see the lack of mention of any of the telecom policy objectives on network expansion, rural telephony, roll-out of 3-G services, enhanced broadband coverage etc for the competitive growth of the sector.

The people in the IT Industry are not very happy either with the increase in the excise duty to 10% from the existing 8%. There is some bad news for the companies offering 3G services as the Government has decided that these companies will not be allowed to claim any tax breaks under Section 80 IA of the Income Tax Act which could further queer the pitch for new and foreign players planning to bid for the 3G auction.

For the media industry, there were no major breakthroughs. In a move to rationalize the differential customs duty structure on import of digital  masters loaded on electronic medium as compared to those imported on cinematographic film, the FM has proposed to charge customs duty only on the value of the carrier medium.

Ramesh Jalan
Publisher
E-mail: rameshkumarjalan@rediffmail.com