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Industry News
 
  • Can't allow our industries swamped by cheap Chinese goods (Commerce Minister)
  • AMD ties up with Hindustan Semiconductor Manufacturing (HSMC) for chip manufacturing
  • Declining exports to miss lowered 2015-16 targets
  • IMF upbeat on India (says India still fastest-growing major economy & pegs growth in FY17 and FY18 at 7.5%; expects global economy to grow 3.2% in 2016)
  • Apple runs into IPR hurdle
  • WTO Cuts Global Trade Forecast
  • Global PC Shipments Fall
 
Policy Update
 
NITI Aayog Moots Tax Breaks for Electronics Manufacturing (UNDER MAKE IN INDIA Policy body recommends steps like preferential buying by govt; end to inverted duty structure & creation of mega coastal economic zone under Sagarmala project) : Seeking to capture world electronics markets with China vacating some space in the sector, the government's key body on policy formulation has suggested a series of reforms to kick-start electronics manufacturing under the Make In India initiative, including tax breaks for big investors and a special coastal zone for production.

In a new policy paper on electronics manufacturing, NITI Aayog has suggested that with a policy shift, India is poised to make a dent in the global market with high input costs in China but warns that this is 'perhaps India's last such opportunity'. It argues that the strategy should be export oriented with import substitution to expand production of electronic goods in the short run.

The strategy paper, a copy of which was accessed by ET, suggests that a mega coastal economic zone (CEZ) be set up under the Sagarmala project with international standard infrastructure and flexible land acquisition and labour laws to kick-start the sector. "A CEZ may be up to 200 to 250 km wide from the coastline, approximately equal distance in length and encompassing a modern deep dredge port. It would have minimal red tape and relatively flexible labour and land acquisitions laws," NITI Aayog has suggested.

Within the new CEZ, companies making large investments and creating big employment have been recommended for a massive tax break, besides a suggestion to end the inverted duty structure and ending all taxes on exports. "A 10-year tax holiday for a firm that invests a substantial sum and generates a large employment within CEZ. For this purpose an investment threshold of US $ 1 billion with the employment of 20,000 may be considered," the paper suggests.
(ET, Apr 07, 2016)

 
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