IT industry upbeat on decision to remove excise duty

The IT industry is upbeat on decision to abolish excise duty on computers which is not only expected to increase PC penetration, but also help India to emerge as a global base for PC production.

The information technology industry is upbeat on the decision to abolish excise duty on computers which is not only expected to increase penetration of PCs in the country, but also help India to emerge as a global base for PC production.

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"Doing away with excise duty on computers can spur demand and improve IT literacy in the country," Wipro CFO and corporate executive vice-president Suresh Senapaty said.

Finance Minister P Chidambaram in his Budget speech exempted computers, mobile phones from excise duty as also customs duty from specified raw materials used in manufacture of parts of cathode ray tubs and capital goods for manufacture of mobile telephone handsets.

"The decision to upgrade 500 ITIs at 100 ITIs every year will create new technology for all IT products such as computers and empower a more empowered workforce for tomorrow," Acer India managing director WS Mukund said.

Former HP India managing director Arun Thiagarajan said the abolition of duty would help in foreign firms set up PC manufacturing units in India and use it as base for exports.

Thiagarajan, a former MAIT president, said the country could be used as a base for PC exports to the globe.

Infosys CEO, president and managing director Nandan M Nilekani said the abolition of excised duty on computers will help education and improve productivity.

"Considering that the Government is set to adhere to the April 1, 2005 decision to abolish custom duty on all IT related imports, the decision now to abolish excise duty is a healthy sign to encourage local manufacturing," Mukund said.