IT industry body Nasscom said that the government's focus on leveraging technology for growth and incentives for startups will provide a fillip to companies but lack of clarity on MAT and higher tax rates for domestic investors continues to remain challenging.
Terming the Budget 2016 as a "mixed bag", Nasscom said the initiatives announced on Monday combined with swift implementation of Digital India will help to digitise India and provide effective citizen services.
"We would urge the government to move forward at a swift pace and build an effective PPP model," Nasscom President R Chandrashekhar said.
The country's largest software services firm Tata Consultancy Services said the FM has delivered a "fiscally responsible" budget.
"The extension of SEZ scheme till 2020 and reduced tax at 10% for global revenues generated by India-registered IPR will further energise entrepreneurship. The FM has announced a slew of Digital platforms to connect farmers with their ecosystem," TCS CEO and MD N Chandrasekaran said.
Nasscom however, said key proposals like removal of dual levies on software products was not addressed. Also, domestic investors continue to face higher tax rates.
BMR & Associates LLP Partner Mahesh Jaising said while the Budget has seen a focus on manufacture of IT hardware, the key issues of the IT services sector, primarily around export status of certain services and provision of alternate expedited service tax refund schemes, remain unaddressed.
Jatin Dalal, Chief Financial Officer at Wipro, said the Budget balances the investment needs of a growth economy with commitments on fiscal discipline.
"The Union Budget focuses on investment in infrastructure and social sectors while attempting to widen the tax base. The measures announced for the rural economy should boost productivity and incomes leading to growth in consumption. Efforts to enhance the Ease of Doing Business has received," he added.
Two schemes enabling digital literacy for rural India, e-procurement for agricultural produce, and digital depository to store school & college certificates come at a crucial time when the country is about to leapfrog through the deployment of BharatNet, Anand Agarwal, CEO, Sterlite Technologies said.
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