ELE Times March 2017 ELE Times | Page 10

News

Apple ' s India Production may trigger GST Alterations

The Ministry of Electronics and IT( MeitY) is positive that Apple would soon be manufacturing its signature iPhone in India. However, a major hurdle is with Apple’ s demand seeking a 15- year exemption on countervailing duty on imported components, a demand India may find difficult to accept under the soon to be rolled out goods and services tax.“ This is not uncommon when companies ask for certain incentives to start production,” said MeitY additional secretary Ajay Kumar. Earlier this year, a six-member Apple team led by its vice president for operations Priya Balasubramaniam and government affairs head Ali Khanafer, met central government officials including the Department of Industrial Policy & Promotion( DIPP) to discuss the concessions Apple sought. Revenue secretary Hasmukh Adhia recently said that there can’ t be individual exemptions under GST which will subsume central taxes such as central excise, service tax, countervailing duty and state taxes including value-added tax, octroi and purchase tax. GST is expected to be implemented from July 1, 2017. Countervailing duty is levied as part of import duty in lieu of

EDF gets Rs 681cr, for Domestic Innovations and Entrepreneurship

central excise duty. DIPP, anchoring the Apple-government talks, recently indicated that a way could be found with some tweaks to existing policy but stressed that any change will be for the industry as a whole and not for any one company. Kumar rejected allegations by the local industry of government bias towards Apple, saying it’ s too premature.
The Government of India( GoI) has
for investors in companies creating
approved Rs 681 crore as seed capital for
intellectual property rights in the field of
building a total corpus of over Rs 6,800
electronics and IT.
crore under the Electronic Development
He said that investments in electronic
Fund( EDF), meant to support
manufacturing, which was just Rs 11,000
entrepreneurship and innovation in
crore in June 2014, has amplified to Rs
electronics and IT.
1,27,880 crore and also India’ s mobile
“ My Ministry has approved Rs 6,831
manufacturing capacity has increased to
venture fund for electronics development.
11 crore in 2015-16, from 6 crore mobile
component makers in the mobile phone
We have given seed money of Rs 681
handsets in 2014-15.
segment,” Prasad said.
crore on the basis of which more venture
“ With 72 new mobile handset and
“ Value of mobile handsets produced in
capital will be raised,” Law and IT minister
component manufacturing units set up in
India has increased by 185 per cent to Rs
Ravi Shankar Prasad stated in a meeting.
last two years, India has emerged as a
54,000 crore in 2015-16 from Rs 18,900
The EDF will act as a‘ mother fund’
mobile manufacturing hub. This includes
crore in 2014-15. Next year, it is going to
supporting various other funds under it
42 mobile manufacturing units and 30
cross Rs 90,000 crore,” he added.

IESA Launches Hyderabad Chapter aims to create ESDM Hub

After the successful launch of the Chennai Chapter, India
thrust on the
Electronics and Semiconductor Association( IESA), trade body
aerospace and defence
representing the Indian Electronics System Design and
manufacturing too.
Manufacturing( ESDM) industry, on After the recent successful
The key objectives of
launch of the Chennai Chapter, IESA, trade body representing the
setting up an office in
Indian Electronics System Design and Manufacturing( ESDM)
Hyderabad are to
industry, on February, 2017, announced the launch of their
widen the eco-system,
Hyderabad chapter.
acquire new members
The key objectives of setting up an office in Hyderabad are to
and strengthen the
widen the eco-system, acquire new members and strengthen the
supply chain in the region. This move will boost the electronics,
supply chain in the region. This move will boost the electronics,
hardware and semiconductor startups and firms in the state with
hardware and semiconductor startups and firms in the state with
the required support and information. There will also be a large
the required support and information. There will also be a large
thrust on the aerospace and defence manufacturing too.
ELE Times | 10 | March, 2017