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By Ashok Chandak<\/a><\/strong>\n
2014 will be marked as a milestone year in the history of Indian ESDM industry<\/a> with the government realising the necessity of building a comprehensive domestic ESDM eco-system. Currently India’s electronics market is about $84 billion and is expected to reach $400 billion.Almost 2\/3rdchunk of the domestic electronic requirement has been addressed by imports and this has an adverse impact on the country’s economy. With the price of oil diminishing day-by-day and gold imports being kept under desirable limits off late, electronics import cost will very soon become the highest contributor tothe trade deficit. There was no option left for the government and Industry but to build a robust domestic electronics industry. Government of India and various state governments’ reacted promptly and strongly to the critical requirement; that’s what we have witnessed in 2014.
\nHowever there needs to be further advancements and actions to realise the dream of making ‘India an ESDM powerhouse’. Based on various studies done by IESA (Top 25 products, Disability report, Market demand, etc )and inputs from the Industries , following are areas require government attention and support:
\nApprove and SPEED UP Policy implementation: SPEED UP investment proposals approvals and disbursement of funds\/Incentives to fast track the manufacturing expansions and start up’s product creations.Hasten Implementations of the Fabless Policy, the Electronic Development Fund, Extension of M-SIP’s by another 5 years, PMA implementation in each state, other investment proposals and incentives for faster impact.
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\nLocalisation of High Impact Products and Investments by large corporates:
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\nA study by IESA and Frost & Sullivan suggests that identifying the products that accounts for nearly 80 per cent of the electronics market revenues and provide the necessary support and incentives to such categories will enable enormous development in the overall ESDM ecosystem. Initiatives aimed at promoting indigenous value addition in the top 20-25 percent of products is expected to have a cascading effect on the remaining 75-80 percent of the products as the top 20 product markets accounts for 80 percent of the total electronics market. Some of the high value products identified by IESA include; Mobile phones, LED TV’s, Computers, Lighting, Energy meters, Digital Radio’s, Set top box, Smart Cards, etc.
\nIt is necessary to create mega package to attract the large Indian and Global corporate to Electronics sector. Special marketing cell and focussed approach to motivate large companies is necessary to create mega impact on the local manufacturing in India.So far the large Indian Industrial houses have been lukewarm to the ESDM story and lot needs to be done to appeal and get these corporates committed to ESDM sector.
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\nWe urge the Government to focus on such High Value Impact products and attract large Industrial houses to create breakthrough impact on India’s ESDM industry.
\nSet up Electronics Commission: There is an immediate need of setting up and Electronic Commission(with industry representative) to SPEED UP all activities including definition and implementation of policies, approvals, resolving issues, etc. for the electronics companies in India and to provide a fair and transparent policy environment which promotes a level playing field and facilitates fair competition.Chief Technology Officer \/ Chief Scientific Officer with Rich Industry Experience within the Electronics Commission are also needed.
\nDeemed export status for ITA1 products: The status of “deemed export” should be granted to ITA1 products\/components manufactured and sold in India. This would enable the benefits of drawback, advance authorization and refund of output Excise duty paid by manufacturers by availing credit of input taxes paid on components imported and made in the country and paid for in cash for value addition. Domestically manufactured electronic products (DMEP) for the purpose of conferring the status of deemed export on them should be identified by using domestic value addition norms, where the threshold progressively increases over the years.
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\nPromote localisation of products and stimulate demand:
\na. Apply additional import duty on NON ITA 1 products.
\nb. Fast track DRM transmitters installation to promote Digital Radio’s and Car audio systems designed and manufactured in India.
\nc. Implement smart metering in all states electricity boards.
\nd. Implement Smart Card based National ID card projects and Contactless payments.
\ne. Standards for Cyber Security, smart grid in India, Smart Lighting, Home automation.
\nf. Fast track Cyber Security, NOFN and Broadband through cable network.
\ng. Electronic Development fund: Define the mechanism and start implementation.
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\nPMA: Market Access to Companies manufacturing products in India - To boost domestic production there is a need to mandate government procurement for electronic products manufactured in India. The existing PMA policies framed should be implemented at an immediate basis to leverage electronic products manufactured in India.
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\nPromote Fabless ecosystem: There is also a need to make Government purchases of Indian product mandatory where Indian designed ICs have been used in order to promote the globally competitive growing fabless ecosystem in India. Approval of fabless Policy.
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\nRemove restrictions on used equipments import for R &D: There has been restriction on imports of used electronic equipment which is treated as hazardous waste. However, lots of Value Addition and R&D activities takes place through these used imported electronic equipment. To give a boost to the R&D activities in the ESDM sector, the Govt should consider removing these restrictions.
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\nTaxation related:
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\nNeed for Correction of anomalies in the inverted duty structure: Presently due to the Inverted Duty Structure and overall disabilities, imports of finished goods are encouraged for many products and components localisations are discouraged which can be further used for manufacturing completed products in the country where substantial value addition can take place.
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\n Enable tax certainty, fairness and stable tax administration for MNCs
\n- Transparent Transfer pricing assessment.
\n- Simplerservice tax assessment and refunds
\n- Directions to curb aggressive audit
\n- Effective bi-lateral engagements through APA’s and timely MAP closures
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\nRemove hurdles on free flow of imported goods used in exports to Prototyping.
\n- Permit hand-carry of critical components
\n- Provide guidelines for smooth clearance of goods imported free of cost under the first-check route.
\n- Simple and easy procedure of import of samples and demo bards\/evaluation boards imported for Prototyping and Development purpose.
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\nResearch & Innovation (R&I) grants for value addition carried out in the ESDM industry:Companies that commit themselves to Value Added Manufacturing and Selling of Finished Goods from India should be incentivised through Research and Innovation Grants that are linked to the Value Addition carried out in India.
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\nTax Credits for Investments made by Corporates for Minority Stake in qualified Technology Start-Ups: Companies that foster the Product and innovation eco-system in the country by investing in a minority stake in the qualified technology start-ups should be encouraged through tax credits. Investments made towards a minority stake (up to 20% stake) in qualified technology start-ups should be allowed to be deducted from the corporate taxes payable by the investing Company up to a maximum limit of 15% of the Corporates Taxes payable.
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\nWe urge the Government to consider the recommendations and make provision in the budget. India has all the right ingredients to be tomorrow’s global ESDM hub, provided with conducive policy environment. IESA strongly believe Electronics can change India.
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\nWe have very little time left before the world moves ahead. Remember we need to run the marathon at sprint’s pace!
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( The writer is Chairman of India Electronics and Semiconductor Association<\/a>)
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通过Ashok Chandak
2014年将是标记为年印度ESDM历史上的一个里程碑行业与政府意识到国内ESDM生态系统构建一个综合的必要性。目前印度的电子市场约为840亿美元,预计将达到4000亿美元。几乎2/3rdchunk国内电子需求解决了进口,这对中国经济有不利影响。油价每天递减和晚黄金进口量处于理想的限制下,电子产品的进口成本将很快成为贡献最高的贸易逆差。没有政府和行业的选择,而是建立一个强劲的国内电子行业。印度政府和各个州政府的强烈反应迅速和关键需求;这就是我们见证了2014年。
然而需要进一步发展和行动实现梦想的“印度一个ESDM强国”。方面,根据不同的研究(排名前25位的产品,残疾的报告,市场需求,等等)和输入的产业,以下是领域需要政府的关注和支持:
批准,加快政策的实施:加快投资方案审批和资金支出/激励快车道制造业扩张和启动的产品创造。加速实现生产线”政策,电子发展基金,扩大M-SIP的被另一个5年,PMA实现在每个州,其他投资建议和激励速度的影响。
本地化高影响的产品和投资的大型企业:
IESA和Frost & Sullivan的一项研究表明,识别产品占近80%的电子市场收入和提供必要的支持和激励等类别将使巨大的发展在整个ESDM生态系统。计划旨在促进本土价值除了在前20 - 25的产品预计将有一个级联影响产品的剩余的75 - 80的前20名产品市场占电子市场总额的80%。的一些方面,包括发现的高价值的产品;手机,电视,电脑,照明、能源米,数字无线电,机顶盒,智能卡等。
有必要创建大型包吸引大型印度和全球企业电子行业。特殊营销单元和集中的方法来激励大公司有必要创建大型印度对当地生产的影响。到目前为止大印度工业房屋已经冷淡ESDM故事,很多需要做上诉和得到这些企业致力于ESDM部门。
我们敦促政府关注这类高价值影响的产品和吸引大型工业房屋创造突破对印度ESDM产业的影响。
建立电子委员会:立即需要设置和电子委员会(与行业代表)加快所有活动包括定义和实施政策,批准,解决问题等电子公司在印度和提供一个公平、透明的政策环境,促进公平竞争,促进公平竞争。首席技术官/首席科学官与丰富的行业经验在电子委员会也是必要的。
认为出口地位ITA1产品:“认为出口”的地位应该授予ITA1产品/组件生产和销售在印度。这将使缺点的好处,消费税的产出预授权和退款支付由制造商主张信贷输入纳税组件的进口和在国家和支付现金价值。国内生产电子产品(DMEP)赋予的目的的状态视为出口他们应该被使用国内价值规范,那里的阈值逐渐增加。
推动本地化的产品和刺激需求:
一。申请额外的非ITA 1产品的进口关税。
b。快车道DRM发射器安装促进数字无线电和汽车音响系统的设计和制造在印度。
c。在所有国家中实现智能计量电木板。
d。实现基于智能卡的国民身份证项目和非接触式支付。
e。网络安全标准,在印度智能电网,智能照明、家庭自动化。
f。快速跟踪网络安全,NOFN通过有线电视网络和宽带。
g。电子发展基金:定义机制,并开始实施。
PMA:公司生产的产品在印度市场准入——刺激国内生产需要授权政府采购电子产品在印度制造。现有的PMA政策框架应实现立即利用电子产品在印度生产的基础。
促进专业生态系统:还有一个需要政府采购印度产品强制性设计ICs使用为了促进增长全球竞争力的专业生态系统在印度。程技术政策的批准。
删除限制进口设备用于研发:有使用电子设备的限制进口以危险的垃圾标准来处理掉它。然而,许多有价值的加法和研发活动发生通过这些进口的电子设备使用。促进研发活动在ESDM部门,政府应该考虑取消这些限制。
税收相关:
需要校正的异常倒责任结构:目前由于倒责任结构和总体障碍,鼓励进口的成品对许多产品和组件本地化气馁,可以进一步用于生产完成产品的国家,实际价值之外。
使税收确定性、公平和稳定为跨国公司税务管理
——透明的转让定价评估。
——Simplerservice税收评估和退款
——方向控制激进的审计
——有效的双边活动通过APA和及时的MAP闭包
移除障碍在进口商品的自由流动用于出口的原型。
——允许自理的关键组件
——提供指导顺利报关进口首先检查下免费的路线。
样品进口——简易程序和演示吟游诗人/评估板进口成型和发展的目的。
研究与创新(r)赠款ESDM行业开展的附加价值:公司致力于增值生产和销售成品从印度应通过研究和创新激励奖助金与价值除了在印度进行的。
税收抵免的少数股权投资由企业合格技术初创企业:企业促进产品和创新生态系统通过投资的少数股权的合格技术初创企业应该鼓励通过税收抵免。对少数股权投资(20%的股份)在合格的科技初创企业应该允许扣除应交企业所得税由投资公司的最大限制企业应付税款的15%。
我们敦促政府考虑的建议,使提供的预算。印度所有正确的成分是明天的全球ESDM中心,提供了有利的政策环境。印度IESA坚信电子可以改变。
我们有很少的时间离世界领先。记住我们需要跑马拉松sprint的速度!
(作者是主席印度电子和半导体协会)
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