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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