Fiscal impetus needed to boost electronics and software exports: ESC report
New Delhi, June 2 (KNN) India needs special funds for electronics sector to help manufacturers in branding and distribution which will give boost to exports, said a study report by Electronics and Computer Software (ESC) Export Promotion Council.
According to the report prepared by ESC, electronics sector is at the back foot in the export arena because of lack of funds.
Suggesting a series of steps for both private and government firms, ESC recommended allocation of special funds for electronics sector to help manufacturers in branding and distribution.
The council also recommended increase in rate of incentives under MEIS (Merchandise Exports from India Scheme) for all products to all countries.
Under MEIS, the government provides duty benefits up to 7 per cent depending on product and country.
Over cost of doing business, ESC said minimizing human interface and promoting online procedures in export-related activities will help cut cost of doing business.
On computer software and ITeS sector, the report said the visa restrictions in countries like the US, Australia and Singapore adversely impact India.
To deal with such issues, ECS recommended that the companies set up on-site offices and hire local consultants and marketing professionals.
"India now needs to leverage intellectual property and aggressively pursue software products. This would require a significant change of strategy adopted by our IT companies and the government”, the report said.
It further added that there is a need to give fiscal impetus to software product development to make it stronger.
Further to boost exports of electronic goods, the report suggested fiscal incentives for the sector the report said “the government provided fiscal incentives must be extended.”
There is also a need to develop a conducive business environment to promote electronics goods manufacturing in the country, the report suggested.
The rising electronics imports are a major concern for India. The country has imported goods worth USD 42 billion in 2016-17 while exports stood at about USD 5 billion only.