BUDGET 2011-Impact- Good news for service industry?
What do you think Budget 2011 has a good impact on service industry or it could be better.. Write your analysis about budget in less than 350 words. Deadline is Mar 11, Friday, 23:59:59
Pranab da and his team has done a fair job with the Budget 2011, giving due attention to the global melt down in previous years and then the glocal recovery of the economies. The great Indian restrain is believed to be built on the strong fundamental of manufacturing process excellence and growing internal consumption. Though, the service sector that heavily depends upon the foreign money coming in was hit hardest by the global melt down. All major IT firms which are highest contributor of service sector were affected. The need of stimulus was, ofcource, fulfilled by the GoI. Now, when the recovery process in the global economy seems on track, it is high time to take back the economic ventilator gradually. The FM has done it this time around. Also, the need of keeping the fiscal deficit in check and preparing the ground for GST, FM has embraced new services in the gamut of service tax. The health care sector has been brought into the net. Certain segments of politics and media are shouting the plea of common man. But, the very fact that, only centrally air conditioned hospitals with more than 25 beds will be taxed, is ignored by the segment. In no case common man of Indian middle class avails the facilities of higher class hospitals. The hospitality sector is the one which has felt the pinch of the global down turn, is also putting efforts to rollback the service tax, with their argument stating that Indian hospitality sector has been the highest tax(37% including 10% this time) among the southern Asian countries (13% to 27%). The industry is yet to recover from the jolts felt by 26/11 event. Telecom sector is disappointed given the high investments made by them in 3G spectrum purchases. Also, their request of tax cuts for the broadband services have gone unheard. The target growth of 9.9 % for the services sector seems very much achievable, given the steady growth in foreign economies. The good has been done. But better could have been done through knitting the net closely, instead making it wider.
Pranab da and his team has done a fair job with the Budget 2011, giving due attention to the global melt down in previous years and then the glocal recovery of the economies. The great Indian restrain is believed to be built on the strong fundamental of manufacturing process excellence and growing internal consumption.
ReplyDeleteThough, the service sector that heavily depends upon the foreign money coming in was hit hardest by the global melt down. All major IT firms which are highest contributor of service sector were affected. The need of stimulus was, ofcource, fulfilled by the GoI. Now, when the recovery process in the global economy seems on track, it is high time to take back the economic ventilator gradually.
The FM has done it this time around. Also, the need of keeping the fiscal deficit in check and preparing the ground for GST, FM has embraced new services in the gamut of service tax.
The health care sector has been brought into the net. Certain segments of politics and media are shouting the plea of common man. But, the very fact that, only centrally air conditioned hospitals with more than 25 beds will be taxed, is ignored by the segment. In no case common man of Indian middle class avails the facilities of higher class hospitals. The hospitality sector is the one which has felt the pinch of the global down turn, is also putting efforts to rollback the service tax, with their argument stating that Indian hospitality sector has been the highest tax(37% including 10% this time) among the southern Asian countries (13% to 27%). The industry is yet to recover from the jolts felt by 26/11 event.
Telecom sector is disappointed given the high investments made by them in 3G spectrum purchases. Also, their request of tax cuts for the broadband services have gone unheard.
The target growth of 9.9 % for the services sector seems very much achievable, given the steady growth in foreign economies.
The good has been done. But better could have been done through knitting the net closely, instead making it wider.