The industry body also suggested extended concessional excise duty, similar to mobile handset manufacturing, to boost production of PCs and tablets, it said in a statement.
"This budget marks the first litmus test propelling the development agenda. The past years have witnessed an economic downturn and a downturn of domestic growth.," MAIT President Amar Babu said.
The Budget should address issues curtailing investment sentiment and bring renewed optimism for sustained economic growth, he added.
"Plugging lacuna with respect to Inverted Duty Structures would encourage manufacturing in India. The government should exempt SAD on all components used by a manufacturer of IT hardware," MAIT recommended.
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"We recommend a clarification to be issued with regard to software licensors involved in sale of pre-packaged software," it added.
"MAIT sought clarity on the date of implementation of GST with uniformity in procedures and documentation across the country. Also, uniformity in GST rate as well as threshold for levy across goods and services and across the centre and state laws may be published at the earliest," it said.