Manufacturers Association for Information Technology (MAIT) has urged the new government led by Narendra Modi to facilitate hardware manufacturing in the country while removing inverted duty structure.
Congratulating Narendra Modi on becoming the 15th Prime Minister of India, the apex body representing IT hardware sector said that the government should build a manufacturing ecosystem by bringing in policy reforms, regulatory frameworks, eliminating complex tax structure that would help in increasing investment.
Meanwhile, it also pointed out exchange rate variations and subsidies for PC penetration other key concerns of the industry.
The IT industry usually has to deal with the exchange rate variations which lead to a lot of difficulty for the industry. MAIT said that the government should look into clauses of Exchange Rate Variation clause for all IT hardware product purchase contracts, regardless of delivery period under the General Finance Rules (GFR), 2005.
It also stressed on increasing PC penetration by providing subsidies and low-cost loans and discount on PC purchase.
“India has witnessed significant PC sales in the past few years, it still has IT penetration below 10%. We expect the BJP to stimulate growth in the ICT segment, which would engage 4, 23,500 people, contribute Rs 2, 91,700 crore to the GDP and 1, 10,600 crore in taxes during the next five years,” MAIT said in a statement.
InfotechLead News Team