IndusView envisages pro-development Budget

New Delhi, Feb 26 (UNI) The forthcoming Budget is likely to be pro-development with the semi-conductor policy already been approved by the Centre, ensuring that the economy continues to grow at more than nine per cent, an industry analyst said today.

The allowing of capital subsidy of 25 per cent on investments for setting up semi-conductor, micro and nano-technology manufacturing units will help bring huge investments for the country, advisory firm IndusView said.

''The benefit extended to the semi-conductor industry is expected to draw investments of up to 10 billion dollars in the next four to five years from global chip manufacturers which initially shied away from India such as Intel Corp, Advanced Micro Devices Inc, Texas Instruments, ST Microelectronics, among others,'' said IndusView Chairman Bundeep Singh Rangar.

Mr Rangar opined that the sectors which should be taken into consideration by the Finance Minister include retail, infrastructure, real estate and telecommunication.

''The retail sector in India is witnessing a huge revamp as traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Easing regulations in the sector will help bring the benefits of organised retail to customers,'' he said.

India's total retail market at 202.6 billion dollars, according to Indusview, is expected to grow at a compounded rate of 30 per cent in the next five years.

With the organised retail segment growing at the rate of 25-30 per cent per annum, revenues from the sector are expected to triple from the current 7.7 billion dollars to 24 billion dollars by 2010, it said.

Mr Rangar said the infrastructure sector offers the biggest opportunity in India with an investment of 150 billion dollars required in the next few years.

Infrastructure assumes importance as the development of the corresponding real-estate sector depends on it.

''Introducing development schemes and systems that enhances transparency in the sector is one way by which overseas funds announced over the year of more than seven billion dollars can be attracted and utilised optimally,'' said Board Director of IndusView Rishi Sahai.

India's real estate market is expected to be worth 50 billion dollars by 2010 from 14 billion dollars this year. This growth in the realty sector will come from housing requirement of 80 million units over the next 15 years and 200 million square feet in office space required over the next five years by the country's Information Technology and Business Process Outsourcing industries, Mr Sahai further added.

Allowing increased participation of global service providers in their Indian operations would bring those not present in the country and with them the much needed investments.

The quantum of investments required in the IT sector in the next four years is about 20 billion dollars, according to an industry estimate.

UNI