Poor Infrastructure |
Ÿ |
Creation of Electronic Manufacturing Clusters ( EMCs ) |
Ÿ |
Creation of R & D Centers |
|
Ÿ |
Development of port infrastructure |
As per the EY study , for the ITA-1 Low Value sector , comprising |
Ÿ |
Chargers / adapters , battery and wired headsets / speakers , |
|
of PCs , Notebooks , Mobile Phones and tablets , the overall |
for manufacture of mobile handsets – 2 % without CENVAT |
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disabilities reduced to some extent ( by 1.5 %) due to the |
credit or 12.5 % with CENVAT credit |
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positive initiatives taken by the government between May 2014 |
Ÿ |
Consumer premise equipment ( CPE ) viz . routers , |
|
and January 2015 . |
broadband modems , set-top boxes , CCTV camera / IP |
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In addition to the policy interventions mentioned above , the |
camera etc . – 4 % without CENVAT credit or 12.5 % with |
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Budget , 2015 brought in the following favourable policies : |
CENVAT credit . |
||
Ÿ |
Exemption from customs duty and excise duty on |
On similar lines , an extension of the lower excise duty provision to |
|
procurement of all goods ( parts , components , accessories |
laptops , notebooks and PCs without CENVAT credit , with exemption for |
||
including sub-parts ) for use in manufacture of tablet |
parts and accessories , will go a long way in promoting manufacture of |
||
computers |
these products in India . |
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Ÿ |
Option of concessional rate of excise duty of 2 % ( without |
To reiterate in this context , while mobile phones and tablets |
|
availing CENVAT credit on inputs and capital goods ) on the |
are consumption devices ; laptops , notebooks and PCs are |
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finished goods or alternatively , the option of standard |
creation and productivity enhancing devices , which are largely |
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excise duty rate of 12.5 per cent with full CENVAT credit to |
used in the services and manufacturing sectors . Increased |
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tablet computers . |
investments in such devices will boost productivity and GDP , |
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The above policy initiative has encouraged many mobile phone |
besides creating employment and improving the balance of |
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manufacturers to draw up plans for manufacturing in India , |
trade of the Indian economy . |
||
including the USD 5 billion dollar investment envisaged by |
Secondly , not extending the fiscal incentive to NBs and DTs |
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Foxconn . Given that the policy announcement was only |
drastically reduces component supplier scale and inhibits |
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formalized in July 2015 , and mobile handset manufacturing |
ecosystem growth . NB motherboards comprise 60 %+ of the |
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requires green-field investments , it may take some time for |
supplier production . Given the overlap of suppliers between |
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actual investments and manufacturing to start . |
smartphone , tablets and NBs , excluding NBs and PCs from the |
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Further , Budget 2016 has extended the differential duty regime |
tax benefits limits the scale . |
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to the following categories of products : |