Stable, long-term policies urgently required for domestic IT-market growth: MAIT

NEW DELHI, INDIA: MAIT, the apex body representing India’s IT hardware, training and designs and manufacturing, in a memorandum to the Ministry of Finance, Government of India, has stressed upon the need for a stable policy regime and growth-oriented measures to boost IT hardware industry in the country.

MAIT president, Dr. Alok Bharadwaj, commented: “With lower-than-expected consumption of IT products in the Financial Year 2011-12 owing to the Thailand flood and Rupee devaluation, we are now hoping for a long-term growth-oriented & investment friendly policies to provide much needed drivers.”

While pointing out the need for rapid expansion of IT hardware industry, Dr Bharadwaj said, “In India’s economic transformation, IT is a big enabler. MAIT members have repeatedly emphasized that a long-term, holistic fiscal policy framework is the need of the hour to encourage manufacturing and a much-needed investment fillip to the IT industry in India.

“India’s IT hardware industry was $ 16 billion or Rs 70,000 cr size in the year 2010-11. Less than one third of this was India manufactured. This must change. Hence providing appropriate incentives for IT manufacturers, finished products and components in India would have a positive impact on IT manufacturing investments.”

On the same lines, Sabyasachi Patra, executive director, MAIT said: “Manufacturing is an idea whose time has come. We need to realise our strengths and focus on those to take the manufacturing to the next orbit.”

The MAIT memorandum to the finance ministry includes seven vital recommendations for Union Budget 2012-13, some of which are:

* Removal of anomaly in Inverted duty structure and abolition of 4 percent special additional duty (SAD).
* Withdrawal of MRP based assessment for IT products.
* Custom duty correction for lenses and accessories.
* Abolition of MAT and continuance of exemption benefits on manufacturing in nominated areas as well as schemes.
* Correction of double taxation in AMCs (Annual Maintenance Contracts) as both goods and as services.
* Confirmation on GST implementation timelines.
* Clear guidelines on transfer pricing to eliminate ambiguity and unpredictability to enhance investor’s sentiments.

MAIT also announced new initiatives as an expansion of its charter and goals for 2012.

* Launch of E-waste information exchange portal, in 90 days.
* Expansion of membership to include recyclers, SI, SME, Channels Associations, Sectoral skill development centres, R&D centres etc.
* Creation of specialised vertical chapter in MAIT as house with in a house. Launching Green IT chapter and –e-waste recycler chapter.

Dr. Bharadwaj added: “In order to expand the reach of MAIT’s agenda, we are on a drive to expand the membership base to include all elements of IT ecosystem including design centres, recyclers, Skill development centres, application developers, system integrators as well as SME’s. In order to build a sustainable and environment friendly IT industry in India, MAIT is happy to announce the launch of e-waste information exchange portal to help members on better compliance.”

Elaborating on new initiatives, Patra concluded: “While striving to remove the disabilities afflicting the entire ICT manufacturing ecosystem and promoting domestic manufacturing so that the imports doesn’t exceed the oil import bill, MAIT realises that the proliferation of various consumer premise equipment (CPEs) and personal handheld devices requires a focused effort in creation of standards to promote energy efficiency and reduce our carbon footprint. MAIT will undertake initiatives to raise consumer awareness about safe disposal of eWaste.”