The electronics body is eyeing the growth of the industry as a national agenda.
With the Union Budget expected to hit the country very soon, varied sectors are proposing their suggestions to the government. According to a TOI report, the India Electronics and Semiconductor Association (IESA), that represents the country’s electronics sector has presented its set of recommendations to the union government for this year’s budget.
“For India to achieve self-sufficiency in electronics, the Government of India needs to focus on: policies that enable India to become self-sufficient in making globally competitive electronics products. Given the talent availability, I see no reason why India cannot become a global leader in electronics in the near future,” Satya Gupta, chairman, IESA reportedly said.
The electronic system design and manufacturing (ESDM) industry reportedly offers an opportunity of $400 billion by the year 2020. The content of semiconductor has increased in the Bill of Materials (BoM) of electronic products. “The semiconductor design industry generated revenues of $8.8 billion in the year 2011 and has witnessed a robust growth of 17.3 per cent since the year 2009. Hence we urge the centre to take proactive steps to encourage this sunrise industry,” PVG Menon, president, IESA also said.
The recommendations that the body has suggested are focused around the following areas: making development of domestic electronics industry, a key national agenda. The trade bought sought quick implementation a rationalised indirect tax structure of 12 per cent GST (8 per cent Excise + 4 per cent VAT) on the electronics manufacturing value chain. It also recommended a total exemption of Service Tax for SEZ. Apart from these, creation of a special fund and introduction of special incentives for R&D have also been put across by the body, according to the report.
