IT industry suggests policy reforms, exemption of SAD from new govt
Updated: May 27, 2014 03:20:32pm
New Delhi, May 27 (KNN) Narendra Modi government should put in place a manufacturing ecosystem immediately by ushering in policy reforms, regulatory frameworks and removing inverted duty structure to facilitate investments in the country, an industry body representing IT Hardware sector has said adding that India should restore confidence by addressing these issues and checking India’s miserable rank of 134 in World Bank’s ‘ease of doing business.’
Although the new government will be faced with new demands and expectations, it has to look for resources and expertise to revive economic growth as also renew investments, particularly in the technology space, Manufacturers’ Association for Information Technology (MAIT) said in a release.
MAIT has recommended some key action items for the BJP Government to take ICT on a global footprint.
“With electronic imports standing at USD 16 billion, the BJP should put enabling policies in place for sprucing up hardware manufacturing to facilitate investments in the country,” it said.
“Inverted duty structure makes domestically manufactured goods uncompetitive. The new government should look at exemption of SAD on all components used by the IT manufacturer.
“Implementation woes in Compulsory Registration order, delays in granting of EPR authorizations by State Pollution Boards, no fixed process for registrations and unclear deadlines badly impact the industry. The IT industry has always been a trendsetter in terms of quality and safety. Government should jointly work with the industry on self-regulation,” MAIT added.
The Government should look at amending the adoption of Exchange Rate Variation clause for all IT hardware product purchase contracts, regardless of delivery period under the General Finance Rules (GFR), 2005.
While India has experienced significant growth in PC sales in the past few years, it still has IT penetration below 10 per cent. “We expect the BJP to stimulate growth in the ICT segment, which would engage 4,23,500 people, contribute Rs 2,91,700 crore to the GDP and Rs 1,10,600 crore in taxes during the next five years,” it added.
Commenting on the victory of BJP, President, MAIT, Amar Babu said, “Although Narendra Modi has actively spoken on manufacturing, we suggest his government put in place a manufacturing ecosystem immediately by ushering in policy reforms, regulatory frameworks and removing inverted duty structure to facilitate investments in the country”.
He also said, “India is a difficult place to start any business, especially when it comes to enforcing contracts and obtaining building permits. India should restore confidence by addressing these issues and checking India’s miserable rank of 134 in World Bank’s ‘ease of doing business. The Government should consider lowering interest rates on corporate borrowing and a steady transformation of India’s complex tax structure”. (KNN/SD)
Although the new government will be faced with new demands and expectations, it has to look for resources and expertise to revive economic growth as also renew investments, particularly in the technology space, Manufacturers’ Association for Information Technology (MAIT) said in a release.
MAIT has recommended some key action items for the BJP Government to take ICT on a global footprint.
“With electronic imports standing at USD 16 billion, the BJP should put enabling policies in place for sprucing up hardware manufacturing to facilitate investments in the country,” it said.
“Inverted duty structure makes domestically manufactured goods uncompetitive. The new government should look at exemption of SAD on all components used by the IT manufacturer.
“Implementation woes in Compulsory Registration order, delays in granting of EPR authorizations by State Pollution Boards, no fixed process for registrations and unclear deadlines badly impact the industry. The IT industry has always been a trendsetter in terms of quality and safety. Government should jointly work with the industry on self-regulation,” MAIT added.
The Government should look at amending the adoption of Exchange Rate Variation clause for all IT hardware product purchase contracts, regardless of delivery period under the General Finance Rules (GFR), 2005.
While India has experienced significant growth in PC sales in the past few years, it still has IT penetration below 10 per cent. “We expect the BJP to stimulate growth in the ICT segment, which would engage 4,23,500 people, contribute Rs 2,91,700 crore to the GDP and Rs 1,10,600 crore in taxes during the next five years,” it added.
Commenting on the victory of BJP, President, MAIT, Amar Babu said, “Although Narendra Modi has actively spoken on manufacturing, we suggest his government put in place a manufacturing ecosystem immediately by ushering in policy reforms, regulatory frameworks and removing inverted duty structure to facilitate investments in the country”.
He also said, “India is a difficult place to start any business, especially when it comes to enforcing contracts and obtaining building permits. India should restore confidence by addressing these issues and checking India’s miserable rank of 134 in World Bank’s ‘ease of doing business. The Government should consider lowering interest rates on corporate borrowing and a steady transformation of India’s complex tax structure”. (KNN/SD)
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