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\"\"By: Anwar Shirpurwala<\/a><\/strong>
\n
NEW DELHI: As the government moves forward with initiatives like Make in India<\/a>, there is a need to rationalize the existing regulatory infrastructure to create a more conducive business environment for manufacturing companies based in India. We need to streamline our tax norms and procedures in a way that they do not act as impediments in the way of business growth. Policymakers must look for ways to incentivize more companies to invest in manufacturing and participate in the true spirit of ‘Make in India<\/a>.’ The IT hardware manufacturing industry, in particular, is looking for duty incentives that can strengthen their position.
\n
\nThe government had offered such duty benefits to boost local manufacturing of mobile phones and tablets in Union Budget 2015-16. The excise duty structure for mobiles was reduced to one percent without CENVAT credit or 12.5 percent with CENVAT credit, giving domestic manufacturers a benefit of about 11 percent over imported phones. IT equipment makers are seeking extension of this differential duty incentive to other categories of electronic products i.e. all ITA goods including Laptops, Desktops, Personal Computers, e-Readers, Wired and Wireless Customer Premises Equipments (CPEs) like Routers, Modems, Access Points, Networking Switches, Adapters and Surveillance Equipments like CCTV Cameras and IP Cameras.
\n
\nBy extending concessional excise duty and exemption of customs duties on import of parts and sub-parts, the government will be able to encourage IT manufacturing companies in a big way. This will also help achieve the dual vision of ‘Make in India' and ‘Digital India’ campaigns. While the relevance of desktops and laptops in ‘Digital India’ is apparent, even other electronic equipment such as the e-reader can prove to be effective in enhancing literacy levels and accomplishing the government’s mission of connecting people across the remotest corners of the country.
\n
\nAs per an independent MAIT report titled “Policy Interventions for ‘Net Zero Imports’: India IT-ESDM Sector” (February 2016), 100,000 direct jobs and 300,000 jobs in components manufacturing can be created, if estimated demand for 30 million PCs is fulfilled entirely through domestic production over the next five years.
\n
\nDeveloping the Indian Manufacturing Eco-system<\/strong>
\n
The government aims to develop a complete value chain in India for IT & Electronics hardware under their programmes Make in India and Digital India by boosting domestic manufacturing. In order to develop India as a strong base for Electronic System Design & Manufacturing (ESDM<\/a>) for domestic as well as global markets, the government must take concrete measures to promote manufacturing of electronic components and sub-parts. For example, direct imports of Populated PCBs (Component Mounted Circuit Boards)\/ Motherboards, Add-On Cards, RAM, LCD Monitors, SMPS should be curbed by levying tariffs so as to create duty differentials in favor of domestic manufacturers as a controlling measure. In 2015, we believe the share of domestic manufacturers was only 45 per cent of the total ESDM market of USD 31.6 billion. For the IT products market of USD 5.8 billion this proportion was even lower at around 32 per cent. The policy interventions by the government for enabling domestic manufacturing by the IT-ESDM sector would help in immediate import substitution by utilising existing installed capacities, thus doubling domestic IT production to USD 2.6 billion within one year.
\n
\nIt may be noted that smartphones or other computing devices are of little use in the hands of the users unless they are connected to Broadband Networks, either wired or wireless. Goods classified as Customer Premises Equipment help the users to get connected to the internet and computer networks. PCs and CPEs are the main tools and links that will connect the masses to the internet and bring them together in the e-revolution triggered through Digital India.
\n
\nThe duty differential scheme can go a long way in encouraging domestic manufacturing of IT and electronics equipment and making it much more viable. It will also benefit intermediary goods manufacturers as OEMs will be compelled to procure components like Motherboards, SMPS, RAMs, Monitors manufactured in India. Increased volumes of intermediary goods will bring component manufacturers to India, thereby helping build a complete ecosystem. This will in turn provide huge employment opportunities and create additional revenues for the government.
\n
\nThe Socio-Economic Impact<\/strong>
\n
\nThe above reforms will have a significant impact on the domestic IT manufacturing sector resulting in numerous social and economic benefits as well. Electronic components that are being currently imported will get manufactured locally, creating huge cost advantages. The initial cost incurred in creating a manufacturing eco-system in the country will be compensated by virtue of huge economic activity that will take place across the PC, CPE, mobile and tablets value chain. This would further result in the increase of related service sector activity which would contribute substantially to service tax and also generate huge employment opportunities – direct as well as indirect.
\n
\nIncreased economic activity in ancillary and related service sectors will also have a multiplier effect. With more and more component manufacturers setting up base in India, we will be able to build a complete value chain in electronics and hardware manufacturing. A sound base for ESDM and indigenous components manufacturing shall be laid. That will also reduce the dependency on imports in strategic electronics sectors, and thereby achieve the Prime Minister’s vision of ‘Net Zero Imports’. In fact, as increased volumes help achieve economies of scale we will be able to cater to global demand through exports. Innovation and R&D activities will also get a boost, creating an overall positive business environment.
\n
\nIt is our fervent belief that by appropriately incentivizing the domestic IT manufacturing sector and by extending the duty differential benefits to the aforesaid product categories, the government will be able to truly realize the vision of “Make in India” for India as well as for the global market.
\n
\n(The author is the Executive Director of MAIT)<\/em><\/body>","next_sibling":[{"msid":51112872,"title":"Kotak buys stake in Airtel M Commerce for Rs 98.38 cr","entity_type":"ARTICLE","link":"\/news\/kotak-buys-stake-in-airtel-m-commerce-for-rs-98-38-cr\/51112872","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":51107697,"entity_type":"ARTICLE","title":"How duty differential incentives can boost IT hardware manufacturing, generate up to 4-lakh jobs","synopsis":"We need to streamline our tax norms and procedures in a way that they do not act as impediments in the way of business growth. Policymakers must look for ways to incentivize more companies to invest in manufacturing and participate in the true spirit of \u2018Make in India.","titleseo":"telecomnews\/how-duty-differential-incentives-can-boost-it-hardware-manufacturing-generate-up-to-4-lakh-jobs","status":"ACTIVE","authors":[],"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2016-02-23 23:30:20","lastupd":"2016-02-23 23:30:20","breadcrumbTags":["Enterprise IT","ESDM","Anwar Shirpurwala","make in India","Budget2016"],"secinfo":{"seolocation":"telecomnews\/how-duty-differential-incentives-can-boost-it-hardware-manufacturing-generate-up-to-4-lakh-jobs"}}" data-authors="[" "]" data-category-name="" data-category_id="" data-date="2016-02-23" data-index="article_1">

责任如何微分激励可以提高硬件制造、产生4-lakh工作吗

我们需要简化税收规范和程序,他们不作为障碍的业务增长。政策制定者必须寻找方法来激励更多的企业投资于制造业和参与的真正精神”在印度。

  • 发布于2016年2月23日下午11:30点坚持
由:安瓦尔Shirpurwala

新德里:政府推进计划在印度,需要理顺现有的监管基础设施来创造一个更有利的商业环境为基础的制造业公司在印度。我们需要简化税收规范和程序,他们不作为障碍的业务增长。政策制定者必须寻找方法来激励更多的企业投资于制造业和参与的真正精神”在印度”。尤其是IT硬件制造业,正在寻找责任激励,可以加强他们的立场。

政府曾提出这样的责任效益提升当地的生产手机和平板电脑在联合预算2015 - 16。手机的消费税结构是减少到百分之一,没有信用或12.5% CENVAT CENVAT信用,给国内制造商收益约11%进口手机。它设备制造商正在寻求扩展这个微分责任激励其他类别的电子产品即所有ITA产品包括笔记本电脑、台式电脑,个人电脑,电子阅读器,有线和无线客户前提设备(cpe)像路由器、调制解调器,接入点、网络交换机、适配器和监视设备像闭路电视摄像头和IP摄像机。

通过扩展优惠消费税和关税减免进口零部件和附带的,政府可以鼓励它在很大程度上制造企业。这也将帮助实现的双重视野,“让印度”和“数字印度”活动。台式机和笔记本的相关性在印度数字是明显,甚至其他电子设备,如电子阅读器可以被证明是有效地提高读写水平和实现政府的任务相联系的人在这个国家偏远的角落。

正如每一个独立的MAIT报告题为“零进口的政策干预:印度IT-ESDM部门”(2016年2月),100000个直接就业机会和300000个工作可以创建组件制造,如果估计3000万台电脑的需求实现完全通过国内生产在未来五年。

印度制造业生态系统发展

政府的目标是开发一个完整的价值链在印度它&电子硬件项目使在印度和印度数字下提振国内制造。为了发展印度的强碱电子系统设计与制造(ESDM)为国内以及全球市场,政府必须采取切实措施促进电子元器件的制造和附带的。例如,密集的直接进口多氯联苯(组件安装电路板)/主板,附加卡,RAM,液晶显示器,smp应该限制通过征收关税,以创建责任差异支持国内制造商作为一种控制措施。2015年,我们认为国内制造商的份额只有45%总ESDM市场的316亿美元。产品市场的58亿美元这一比例在32%左右甚至更低,政府的政策干预,使IT-ESDM部门将帮助国内制造业的直接进口替代利用现有的安装能力,因此加倍国内生产在一年26亿美元。

可以指出,智能手机或其他计算设备的使用在用户手中,除非他们被连接到宽带网络、有线或无线。商品归类为客户前提设备帮助用户连接到互联网和计算机网络。电脑和cp是主要的工具和链接,将群众连接到互联网,让他们在印度e-revolution通过数字触发的。

义务微分方案可以在鼓励国内制造业,电子设备,使其更可行。它也将受益中介产品制造商为oem厂商将被迫购买组件,如主板smp,公羊、显示器在印度制造。中介量增加的货物将给印度带来零部件制造商,从而帮助构建一个完整的生态系统。这反过来将提供巨大的就业机会,为政府创造额外收入。

社会经济影响

上述改革将产生重大影响的国内制造业造成大量的社会和经济效益。电子元件,目前正在进口会在本地生产,创造了巨大的成本优势。最初的成本在制造业创造一个生态系统将补偿由于巨大的经济活动将在PC、CPE、手机和平板电脑的价值链。这将进一步导致相关服务业活动的增加将大大有助于服务税,并产生巨大的就业机会——直接以及间接。

增加辅助及相关服务行业的经济活动也将有一个乘数效应。随着越来越多的零部件制造商在印度设立基地,我们将能够构建一个完整的价值链在电子和硬件制造。声音ESDM和本土零部件制造基地。也会减少依赖进口的战略电子领域,从而实现首相的观点“零进口”。事实上,增加卷帮助实现规模经济,我们将能够满足全球需求通过出口。创新和研发活动也将得到提升,创造一个整体积极的商业环境。

热切相信通过适当激励国内制造业,通过扩展责任对上述产品类别微分的好处,政府将能够真正实现“印度”的愿景对印度以及为全球市场。

(作者是MAIT执行主任)
  • 发布于2016年2月23日下午11:30点坚持

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  • 责任如何微分激励可以提高硬件制造、产生4-lakh工作吗
\"\"By: Anwar Shirpurwala<\/a><\/strong>
\n
NEW DELHI: As the government moves forward with initiatives like Make in India<\/a>, there is a need to rationalize the existing regulatory infrastructure to create a more conducive business environment for manufacturing companies based in India. We need to streamline our tax norms and procedures in a way that they do not act as impediments in the way of business growth. Policymakers must look for ways to incentivize more companies to invest in manufacturing and participate in the true spirit of ‘Make in India<\/a>.’ The IT hardware manufacturing industry, in particular, is looking for duty incentives that can strengthen their position.
\n
\nThe government had offered such duty benefits to boost local manufacturing of mobile phones and tablets in Union Budget 2015-16. The excise duty structure for mobiles was reduced to one percent without CENVAT credit or 12.5 percent with CENVAT credit, giving domestic manufacturers a benefit of about 11 percent over imported phones. IT equipment makers are seeking extension of this differential duty incentive to other categories of electronic products i.e. all ITA goods including Laptops, Desktops, Personal Computers, e-Readers, Wired and Wireless Customer Premises Equipments (CPEs) like Routers, Modems, Access Points, Networking Switches, Adapters and Surveillance Equipments like CCTV Cameras and IP Cameras.
\n
\nBy extending concessional excise duty and exemption of customs duties on import of parts and sub-parts, the government will be able to encourage IT manufacturing companies in a big way. This will also help achieve the dual vision of ‘Make in India' and ‘Digital India’ campaigns. While the relevance of desktops and laptops in ‘Digital India’ is apparent, even other electronic equipment such as the e-reader can prove to be effective in enhancing literacy levels and accomplishing the government’s mission of connecting people across the remotest corners of the country.
\n
\nAs per an independent MAIT report titled “Policy Interventions for ‘Net Zero Imports’: India IT-ESDM Sector” (February 2016), 100,000 direct jobs and 300,000 jobs in components manufacturing can be created, if estimated demand for 30 million PCs is fulfilled entirely through domestic production over the next five years.
\n
\nDeveloping the Indian Manufacturing Eco-system<\/strong>
\n
The government aims to develop a complete value chain in India for IT & Electronics hardware under their programmes Make in India and Digital India by boosting domestic manufacturing. In order to develop India as a strong base for Electronic System Design & Manufacturing (ESDM<\/a>) for domestic as well as global markets, the government must take concrete measures to promote manufacturing of electronic components and sub-parts. For example, direct imports of Populated PCBs (Component Mounted Circuit Boards)\/ Motherboards, Add-On Cards, RAM, LCD Monitors, SMPS should be curbed by levying tariffs so as to create duty differentials in favor of domestic manufacturers as a controlling measure. In 2015, we believe the share of domestic manufacturers was only 45 per cent of the total ESDM market of USD 31.6 billion. For the IT products market of USD 5.8 billion this proportion was even lower at around 32 per cent. The policy interventions by the government for enabling domestic manufacturing by the IT-ESDM sector would help in immediate import substitution by utilising existing installed capacities, thus doubling domestic IT production to USD 2.6 billion within one year.
\n
\nIt may be noted that smartphones or other computing devices are of little use in the hands of the users unless they are connected to Broadband Networks, either wired or wireless. Goods classified as Customer Premises Equipment help the users to get connected to the internet and computer networks. PCs and CPEs are the main tools and links that will connect the masses to the internet and bring them together in the e-revolution triggered through Digital India.
\n
\nThe duty differential scheme can go a long way in encouraging domestic manufacturing of IT and electronics equipment and making it much more viable. It will also benefit intermediary goods manufacturers as OEMs will be compelled to procure components like Motherboards, SMPS, RAMs, Monitors manufactured in India. Increased volumes of intermediary goods will bring component manufacturers to India, thereby helping build a complete ecosystem. This will in turn provide huge employment opportunities and create additional revenues for the government.
\n
\nThe Socio-Economic Impact<\/strong>
\n
\nThe above reforms will have a significant impact on the domestic IT manufacturing sector resulting in numerous social and economic benefits as well. Electronic components that are being currently imported will get manufactured locally, creating huge cost advantages. The initial cost incurred in creating a manufacturing eco-system in the country will be compensated by virtue of huge economic activity that will take place across the PC, CPE, mobile and tablets value chain. This would further result in the increase of related service sector activity which would contribute substantially to service tax and also generate huge employment opportunities – direct as well as indirect.
\n
\nIncreased economic activity in ancillary and related service sectors will also have a multiplier effect. With more and more component manufacturers setting up base in India, we will be able to build a complete value chain in electronics and hardware manufacturing. A sound base for ESDM and indigenous components manufacturing shall be laid. That will also reduce the dependency on imports in strategic electronics sectors, and thereby achieve the Prime Minister’s vision of ‘Net Zero Imports’. In fact, as increased volumes help achieve economies of scale we will be able to cater to global demand through exports. Innovation and R&D activities will also get a boost, creating an overall positive business environment.
\n
\nIt is our fervent belief that by appropriately incentivizing the domestic IT manufacturing sector and by extending the duty differential benefits to the aforesaid product categories, the government will be able to truly realize the vision of “Make in India” for India as well as for the global market.
\n
\n(The author is the Executive Director of MAIT)<\/em><\/body>","next_sibling":[{"msid":51112872,"title":"Kotak buys stake in Airtel M Commerce for Rs 98.38 cr","entity_type":"ARTICLE","link":"\/news\/kotak-buys-stake-in-airtel-m-commerce-for-rs-98-38-cr\/51112872","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":51107697,"entity_type":"ARTICLE","title":"How duty differential incentives can boost IT hardware manufacturing, generate up to 4-lakh jobs","synopsis":"We need to streamline our tax norms and procedures in a way that they do not act as impediments in the way of business growth. Policymakers must look for ways to incentivize more companies to invest in manufacturing and participate in the true spirit of \u2018Make in India.","titleseo":"telecomnews\/how-duty-differential-incentives-can-boost-it-hardware-manufacturing-generate-up-to-4-lakh-jobs","status":"ACTIVE","authors":[],"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2016-02-23 23:30:20","lastupd":"2016-02-23 23:30:20","breadcrumbTags":["Enterprise IT","ESDM","Anwar Shirpurwala","make in India","Budget2016"],"secinfo":{"seolocation":"telecomnews\/how-duty-differential-incentives-can-boost-it-hardware-manufacturing-generate-up-to-4-lakh-jobs"}}" data-news_link="//www.iser-br.com/news/how-duty-differential-incentives-can-boost-it-hardware-manufacturing-generate-up-to-4-lakh-jobs/51107697">