MAIT in a memorandum to the Ministry of Finance, Government of India, has emphasized the need for growth-oriented measures to boost domestic manufacturing in the country.
J V Ramamurthy, President, MAIT said that “the IT Hardware manufacturing industry will provide employment for not-so-lucky people, possessing educational qualifications like ITI and Diploma, besides gender employment. He further said that the current internet density and penetration of IT have enough of headroom for growth and India being geographically at a right location in the middle of the Globe, it serves as centre for products and services exports towards African and South Asian countries, besides the Middle East. With growing telecom density, growth of internet and IT, should be easy especially with current large projects’ roll out plan by Government of India and the devices cost tumbling year after year”.
“With manufacturing value addition in India abysmally low, a whopping 320 Billion USD worth of Electronics will be imported by 2020, which may exceed the annual oil import bill. Hence, in our recommendations, we have requested the Government to abolish the inverted duty structure on IT components which will help revive the demand and promote manufacturing in the country”, said Anwar Shirpurwala, Executive Director, MAIT.
MAIT’s four key recommendations for Union Budget 2013-14 are Inverted duty structure for manufacturers of IT products, Nil rate of CST against Form C purchases of ITA products manufactured in India, Removal of Basic Customs Duty on IT accessories and Enhancement of MRP abatement.
