Union Finance Minister Arun Jaitley on Monday urged to promote indigenous manufacturing of electronic goods.
Jaitley averred that steps have been taken by the Government in last three years including rationalisation of the tariff structure with extension of differential excise duty dispensation on specified electronic equipments and withdrawal of duty exemption etc to promote the same.
Arun Jaitley held the 6th Pre-Budget consultation meeting with stakeholders from IT (Hardware & Software) Group which highlighted the steps taken by Centre to make India a global hub for electronics manufacturing; seek help against protectionist policies; also seek tax incentives for growth of the sector.
During the meeting, Finance Minister said that "in the Union Budget 2017-18, with the aim of creating an eco-system to make India a global hub for electronics manufacturing, the allocation for incentive schemes like M-SIPS and Export Declaration Form (EDF) has been exponentially increased to Rs. 745 crores."
The IT sector representatives invited the attention of Minister to the fact that India's competence in IT-Software is recognised globally.
In recent times, software development and information technology enabled services (ITeS) including business process outsourcing (BPO)/ knowledge process outsourcing services (KPO) industry in India has emerged as one of the most dynamic and vibrant sectors in India's economy with huge employment potential.
They however pointed out that considering some recent protectionist and discriminatory policies followed by other countries, the IT sector would need Government's help at Policy level to ensure combat visa restrictions issues as also to ensure our economic interests.
Similar to steps taken in previous budget to promote indigenous manufacturing of electronic goods, more steps to include rationalization of the tariff structure with extension of differential excise duty dispensation to mobile handsets/ tablet computers and other specified electronic equipment, should be taken in the forthcoming budget for Promoting Broadband; Access for easier fund for Telecom; Tax free Bond for Telecom; Lowering GST on Telecom services to 12 per cent instead of 18 per cent; BCD on all non ITA-1 products; Depreciation benefits for Make in India; Promote components hub; Keep Electronics Sector out of RCEP and increase import duty on Mobile handsets.
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