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Hardware bodies joint council news
Our Convergence Bureau
14 January 2002

New Delhi: MAIT, CETMA, ELCINA and TEMA, four apex associations, have announced the formation of a joint council representing the entire value-chain of the electronic hardware manufacturing industry in India, a MAIT press communiqu said.

The joint council will comprise the president, the vice-president and the head of the secretariat of each association. The council will meet periodically to jointly address the issues of the hardware industry to the government and work towards a favourable policy regime for hardware manufacturing in the country.

"The hardware industry in India is passing through a rough phase. With a policy structure not conducive to manufacturing, the hardware industry has witnessed an erosion of the existing manufacturing base and a disinterest of foreign investors in manufacturing in India. Curiously, the global hardware manufacturing is a US $1,000-billion opportunity, which is growing at 8 per cent per annum. With right policy measures, India may well become a significant player in hardware manufacturing," feel the associations

The hardware industry (electronics/IT/telecom) in India is facing the challenge of a zero duty regime as per Indias commitment to the IT Agreement of the WTO. The IT Agreement pertains to only 217 electronic components and finished goods, and capital goods and certain non-electronic raw materials do not fall within its purview.

While the IT/electronics industry is in favour of a free-and-fair trade regime, the IT Agreement will impact the industry adversely should there be a zero duty on finished goods (end-products), while input raw materials, components including dual usage items and capital goods, continue to attract an import duty of 25 to 35 per cent.

Apart from a host of other disability factors, the very large turnaround time for exports and imports due to procedural delays and a high cost of capital also adversely impact the business, as the rate of obsolescence in the sector is very high, the apex bodies feel.


 


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Hardware bodies joint council