Deepak Shikrapur, head, IT sub-committee, MCCIA, and chairman, Computer Society of India, Pune chapter, says, "The Budget is good for the IT sector, and although we were expecting some harsh measures, they have not come."

"Reduction in duty for computers will increase volumes. Making venture capital funding easier and tax free will boost software growth, as will the focus on IPR. More software will be produced, will flourish and be copywritten," Mr Shikrapur says.

R.K. Arora, director, Centre for the Development of Advanced Computing (C-DAC), Pune, is equally pleased.

"The underlying aspect of the budget is the recognition that knowledge based industry is an enabling industry, and will bring advantages into various sectors. This is shown in its treatment as an infrastructure industry."

"As a result of this focus, export revenue, which has been growing at the rate of  60 per cent, will continue to grow. Reduction in duty on personal computers will bring in more computers and increase automation in industries," says Mr Arora.

He adds that reduction in duty on components will make components cheaper and see larger number of PCs assembled in the country. "Reduction in duty on optic fibre will enable a larger network and increase investment in telecom. All these factors will favorably impact other aspects of the economy."