New Delhi, July 15, 2014: MAIT, the apex body actively representing ICT Manufacturing, Training, IT, Design, R&D and associated services sector welcomed the union budget 2014.
The most important decision of this budget has been the steps taken by the government towards boosting domestic production of electronic items and reducing dependence on imports. Rationalisation of Inverted duty structure by exempting 4% special additional duty on laptops and tablets is appreciated by the IT hardware Industry.
Commenting on the government’s decision to correct inverted duty structure, Amar Babu, President, MAIT said, “MAIT welcomes the long pending correction of inverted duty structure from the IT Hardware sector perspective. Also, some telecom products (non-ITA) have been made liable to 10% basic customs duty, whereas all goods required for manufacture telecom products would continue to enjoy exemption from BCD. These steps will definitely help boost domestic manufacturing”
Another key highlight from the budget is the initiation towards digital India by promising funds to develop smart cities, increase broadband penetration. This is likely to boost IT penetration and e-governance. Budget has also announced allocation of Rs 10,000 crore for venture capital to encourage start-ups and entrepreneurs in the MSME sector and emphasis on investments in roads and ports. This would help in improving ease of doing business leading to the overall growth of IT hardware sector.
Applauding the budget, Anwar Shirpurwala, Executive Director, MAIT, said, “There are several positive signs in the budget that would go a long way in making India as an investment destination. Increasing FDI limit in defense and insurance sectors are some steps in that direction. We also welcome the government’s commitment to address retrospective taxes. MAIT had made several other recommendations and hope that they would be addressed in the near future.”
Owing to the fact in his pre election campaigns, Mr. Modi had stressed on inclusive growth and development in the country, the expectations were at peak. Though the budget did address some key demands of the IT hardware industry while leaving some unattended, MAIT is hopeful that those will be addressed in the current year.
