As the run up to the annual union Budget and the collective prediction machine that always accompanies it reaches a frenzy, it s time for all to prepare wish lists. Compared to earlier years, nothing would seem different this time around either.
Lower taxes, uniform taxes, move to GST, higher investments on infrastructure, clearer and rationalized laws and regulations, Reduction in duties were announced in January last year, which led to a spurt in sales of PCs and components. Such largesse, though wished for, is not expected this time around. What s expected though is that MAIT s representations once again are going to be either rejected or shrugged off as unviable (case in point, efforts at increasing acceptance of local language computing).
More than the Budget, a far better sign is the announcements that the finance minister has been making indicating the strength of the economy and the confidence in the growth in the corporate sector. Corporates, whether of the small and medium variety or larger ones, are investing in expanding their presence, developing new products or in just satisfying customers.
While discussing the state of the market and the best way forward, the overwhelming view is that one can t ride on price alone; and without doubt the main reason one looks forward to the Budget is for affect on product prices. Lower-end PCs and components can only take you as far as the limited market demand; let s admit it, vendors themselves go for limited run production of lower priced models.
I was speaking to a local entrepreneur at the helm of a company started forty years ago in a garage but now earns over Rs 100 crore in exports. His contention is that you can t go wrong if you have focus on product/solution quality and customer satisfaction, backed by a good business philosophy. Consider gains from annual Budgets and other government investments as bonuses.