IBNLive chat: 'Budget may bring relief in FBT regime'

STRONG POINT: GK Muralikrishna CEO & MD of Helios & Matheson Information Technology Ltd.

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Finance Minister P Chidambaram will present the Union Budget on February 29. The presentation of the Budget is one of the most closely followed events in India as it affects almost every one in the country.

How Chidambaram is going to address the IT and healthcare sector this Budget? Will the Finance Minister play it safe this Budget keeping general elections in mind?

To find out all the answers, IBNLive.com organised an online chat with GK Muralikrishna CEO & MD of Helios & Matheson Information Technology Ltd.

Here we reproduce the full text of his chat.

Rose: With Indian healthcare services on a high, will the forthcoming Budget result in a healthcare-driven IT Industry as against the telecom and BFSI sectors of the IT industry?

GK Muralikrishna: While healthcare is growing well, BFSI and telecom will continue to be dominant in the near term.

Yar: Is India moving towards an IT-enabled healthcare service providing country for its citizens?

GK Muralikrishna: Definitely. Cases in point are Narayana Hridalaya and Aravind Eye Hospitals.

Yar: On a theoretical note, what kind of Budget will help India attain above 10 percent GDP in the coming year?

GK Muralikrishna: Besides investment in infrastructure, the skill development mission (that Veena just mentioned) will go a long way in sustaining and growing the GDP.

Manoj: Which small cities are KPO destinations? Are these cities on the radar from the POV of cost, infrastructure, transportation and stable political conditions – Indore, Jaipur, Jodhpur, Nagpur, Nasik, Aurangabad, Baroda, Surat, Coimbatore, Madurai, Bhopal, Jabalpur, Raipur, Bilaspur, Mohali?

GK Muralikrishna: As the industry grows, geographical spread is a natural progression.

Veena: The Union government is setting up a skill development mission in order to address the growing skills shortage in the country with an investment of Rs31,000 crore…Do you think it will make a difference?

GK Muralikrishna: Surely.

Jatin: Sir, a simple question to ask. If this current trend of IT depreciation continues, which will be the first industry to close --IT or BPO?

GK Muralikrishna: As per the NASSCOM-McKinsey study, IT and ITES are projected to grow rapidly in the next 2 years.

Anu: How will the IT sector 's growth be in the next 2 years?

GK Muralikrishna: It is expected to double in the next 2 years from US$ 32 billion to US$ 60 billion.

Kangana: Would you look at smaller healthcare delivery units or larger ones should you decide to sell to Indian hospitals?

GK Muralikrishna: We can commence with large chains of hospitals and progressively address the needs of smaller healthcare units.

Shreikanth: The IT Companies spend big money on training the trainees to make them deployable. Till then they are only an investment. Don’t you think that Government should give sops in such cases?

GK Muralikrishna: It's a welcome suggestion.

Yar: Hello sir, say if FM extends the STPI scheme this budget, how long do you want it to be extended?

GK Muralikrishna: Considering the market potential and competition in the global market, it may be extended for 5 to 10 years.