BUDGET 2014: South partners not happy with FDI in e-commerce

Partners gave a mixed reaction regarding Arun Jaitley's maiden financial budget for 2014-15. While a few welcomed the attempt to have something for everybody, some of the contentious issues like FDI in e-commerce were not welcomed by them. This was obvious because the e-commerce sites are proving to be a major threat for the traditional channel.

R. Sridhar, secretary, FIDTAK, the Karnataka IT association said, "I was expecting 100% FDI in the manufacturing sector. FDI in retail and e-commerce will neither help the economy nor will create job opportunities." He added by saying that reduction of duties on electronic goods is not going to benefit the nation. We need to be a manufacturing hub like China. We are a huge nation with millions and we can not be a nation of traders.

Ketan B Shah, secretary, AIT-Bangalore said, "As the mandate said " SAB KA SAATH, SAB KA VIKAAS" (together with everyone, development for everyone), the government has tried its best in the first budget. The expectations were ‘as usual' very high, but nonetheless they have tried to make most of us happy, by marginally raising the Income Tax exemption limit 80C limits. Reducing the duties on specific electronic goods and dual taxation in the software should have been addressed. Also, FDI in e- commerce could have been delayed." The fraternity looks forward to more of e- governance initiatives in streamlining the processes concerned to common man, there by bringing in efficiency in the System and routing out corruption and had concluded that overall a positive budget for the IT.

C Balakrishnan, Secretary, Tamil Nadu-based Confed-ITA said, "I am happy that Tamil Nadu has been promised a textile zone, hospitals and enhancement of the Thoothukudi Harbor. This will help in overall growth of the state. However, the decrease in the price of the products has to be mentioned clearly."

"Reducing the prices of IT products will increase the desire among people to purchase computers and laptops. AKITDA wholeheartedly welcome the announcement by Modi government" , said, Jamesh Joseph, President, All Kerala IT Dealers Association.