Business
India Inc calls for incentives to boost consumer electronics output
New Delhi, April 19
India Inc on Sunday called
for demand and supply side incentives to boost consumer electronics
manufacturing for fulfilling the 'Make in India' campaign objectives.
In
a joint report on policy, the Federation of Indian Chambers of Commerce
and Industry (Ficci) and global accounting firm Ernst and Young
(E&Y) recommended, among other measures, providing deemed export
status to consumer electronics and expanding trade agreements with
countries.
"The FICCI-EY report proposes expansion of government
schemes to white goods and suggests reforms on taxes such as excise
(roll back from 12 percent to 10 percent), CST (central sales tax)
exemption for inter-state purchase of components and customs duty
reduction on certain components," the industry chamber said in a
statement here.
"We have an opportunity like never before to
create a strong manufacturing base. However, to make it a reality the
recommendations have to be implemented fast both in letter and spirit,"
said Som Mittal, chairman, Ficci Electronics and White Goods
Manufacturing Committee.
According to the report, the average localisation level across white goods is around 30-40 percent.
"The
manufacturers face hurdles on the taxation aspects (duty structure,
free trade agreements etc.), cost of capital, under-developed local
supplier base, business infrastructure and ease of doing business,"
Ficci said.