New Delhi, July 4 (KNN) The cost incurred by the domestic manufacturers of electronic parts and components is likely to reduce with the implementation of the Goods and Services Tax (GST), reveals a study.

The Associated Chambers of Commerce & Industry of India (ASSOCHAM) and NEC Technologies jointly conducted a study titled ‘Electricals and Electronics Manufacturing in India’. It says the cost of manufacturing will reduce significantly. Also the local manufacturers will be able to pass on the tax benefit to the consumers by reducing the price of the commodities.

The study further reveals that the industry will be able to save money in warehousing and logistics. This will help bring down the cost by 5 – 8 per cent.

The study also observed that because of the implementation of the GST, the electronics industry in the country will experience a fresh wave, adding to production as demand for locally manufactured electronics will grow.

Commenting upon the government’s demonetization drive, the study said that it helped increase the sale of electronic payment devices. It also helped the electronic payment industry move towards innovation as the country started banking upon it.

The study outlined that for the country to develop as a robust manufacturing hub, it needs to emphasis on building capabilities. It also recommended that the import of components must be discouraged.  

The Goods and Services Tax (GST) was rolled out on July 1, marking it as one of the biggest tax reforms in the country. (KNN/ DA)