Certain sectors of the economy found their hopes smashed as the stimulus package ignored their many woes. Though there has been a across the board cheer for the measures taken by the central government, the beleaguered tourism and IT sectors, which were hopeful of some trouble shooting actions found themselves left in the meltdown rain.
According to sources, the proposal to expand the Software Technology Parks of India (STPI) scheme that grants a ten-year income-tax holiday under Section 10A of the Income-Tax Act to IT and ITeS companies was discussed by the apex committee set up by the government which was finalising the modalities of a second stimulus package.
?The second stimulus package has addressed issues that were most urgent. The STPI is still valid till March 2010. So, I think extending it was not desperate,? said Ganesh Natarajan, chairman of the industry body Nasscom. He added that the industry is however, still very hopeful that the government will eventually take the step which will help a great deal in these troubled times.
As far as the tourism sector is concerned, union minister of tourism, Ambika Soni had recently written to the prime minister, seeking certain relief measures including luxury tax rebate for the tourism and hospitality sector. However, the stimulus package has not considered any measures that will boost the sector. The travel and tourism industry, which was reeling under the global economic downturn, has suffered a big blow after the Mumbai terror attacks.
However, as a trickle down effect both these industries will benefit with the package uplifting the general sentiment in the market along with improving the general spending in the country. ?While there has been a slowdown in most parts of the world, a boost to the domestic industry will surely help the IT industry,? said Natarajan.
The IT hardware (desktop, laptops, printers etc) has been witnessing a downturn due to the high interest rates for sometime. The cut in reverse repo rate and repo rate which will lead to easing of lending rates is expected to boost demand to some extent.
