MAIT Chalks Out Plans For IT Hardware Manufacturers, Channel Partners


MAIT, the apex body representing ICT and electronics manufacturing sector for India, has released a report titled “Enhancing Export Competitiveness of India’s Electronic Hardware Manufacturing Ecosystem.”

The new report aims outlining a combination of policy reforms, consisting of reimbursements of state and central tax levies, relaxation on corporate income tax and production-based incentives to boost the electronics manufacturing in the country.

As part of its mandate of enhancing ‘export-led electronics manufacturing’, MAIT has worked out a roadmap for the electronics sector comprising hardware vendors, channel partners and traders, with specific emphasis on Mobiles, Datacom and PCs.

In the backdrop of the recent announcement by the Finance Minister about introduction of Remission of Duties or Taxes on Export Products (RoDTEP), it has emphasizes that in order to compensate for the discontinuation of the Merchandise Export from India Scheme (MEIS) framework, India needs a policy framework that gives a net compensation of minimum 8% needs to be given to the electronics manufacturing sector to overcome India’s disability.

With India now looking at massive scaling in local manufacturing, MAIT strongly recommends setting up of component hub to decrease India’s disability.

In addition, the study encapsulates the technical reasoning for the harmonization of incentives for both mobiles and chargers to provide impetus for export-led mobile manufacturing in the country.

“We are committed to bringing a positive change in the sector by moving from a domestic-consumption led manufacturing to an export-led approach. This report is also a step in this direction and the intention is to voice the industry’s requirements and recommendations while identifying key opportunities that can be leveraged to enhance the electronics and IT manufacturing ecosystem in the country,” said Nitin Kunkolienker, President, MAIT.

Kunkolienker also said that India is looking at a foreign exchange bill of Rs 5.37 lakh crores on Mobiles, PC and Datacom product consumption by the domestic market in the year 2025 if India does not develop an export led manufacturing ecosystem soon.

However, if India aims and achieves 20% share in the global production by 2025, then India can generate a net positive foreign exchange of Rs. 1.19 lakh crores and contribute Rs. 4.71 lakh crores to India’s GDP. Further PCs as a category has the potential of generating a net foreign exchange positive of Rs 72000 crore.

The report identifies and estimates India’s disabilities and recommends short-term and long-term interventions to create an export-led electronics manufacturing ecosystem in the country.

MAIT recommends incentives be given under following heads which are WTO compliant, including, rebate of State & Central Taxes and Levies, complete tax holiday to the electronics manufacturing industry for the initial 5 years following which a corporate tax of 15%, as well as production based incentives on ITA 1 products that are meant for both domestic consumption and exports from India.

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