Although India is one among the best markets in the world as far as the sale of IT products is concerned, unfortunately, we are yet to have enough manufacturing facilities for the same in this sub-continent. When the country holds dreams of becoming the world’s manufacturing hub for the automobile sector, pharma sector and many other sectors, our leaders are yet to put serious thoughts on setting up industries to manufacture IT products, components, and peripherals at mass scale here.
During these days of economic turmoil, a point is often being raised and debated among the IT professionals, product users, resellers and even other enthusiasts – what would have been the situation, if we could have the IT products completely manufactured in India in mass scale! Could we successfully keep the prices low! Let us see what do the field experts feel about it.
While asked whether he feels that – if vendors start manufacturing in India, then the price of the IT products will decrease to a great extent… Sailesh Singh, Director, Image Computech, Jamshedpur and Secretary, Jamshedpur Information Technology Association (JITA), said, “Yes, if vendors start manufacturing in India, then the price of the IT Products will definetly dercrese to 15-20%.”
On the same issue, Shital Nahar, Director, Nahar Integrated System Services (NISSPL) and President, Computers & Media Dealers Association (CMDA), Pune, opined, “If you check, Custom duty is very less on almost all the products (~@ 5%), whereas Excise component is very high in India. Moreover, we will require lot of good state of art machines and facility for bulk production of these components in India. Government should also give support by reducing Excise and other taxes. Then it can help in reducing prices in India. Additionally, it will create an opportunity of good employment in the country.”
When addressing the concern, Saket Kapur, Managing Director, Green Vision and General Secretary, Progressive Channels Association of Information Technology (PCAIT), New Delhi, conveyed, “If your question is semantically on manufacturing and not mere assembling, then surely it is a long term plan, before we start getting the results.”
“I wish to take the example of the Auto Industry initiated by Maruti Udyog, 25 years back, when the import content was extremely high. But over a period of time and development of ancillaries, auto part manufacturers are now exporting parts to all over the world. India now has emerged as an Auto Parts Hub for the world. This will definitely result in social gain besides apparent control in price, which otherwise maintains volatility owing to Dollar versus Rupee fluctuation,” he added.
Thus, one thing is clear, if India seriously focuses on building up large scale IT products’ manufacturing facilities in the country, obviously, the nation will be benefited. However, as our IT product experts pointed out (above), it will take quite some time to yield remarkable results and along with the development, government’s support in reducing Excise and other Taxes is also very much necessary. Should our parliamentarians put this agenda in their priority list, besides boosting IT-enabled Services (ITES)?
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