NET ZERO IMPORTS
# Description C
Units
FY15 ( est .)
COMPENSATION |
|
|
|
|
|
|
|
Total compensation ( est .) |
Rs . Cr |
98 |
105 |
321 |
771 |
925 |
1,110 |
FY16 ( est .)
FY17 ( est .)
FY18 ( est .)
FY19 ( est .)
- Assembly compensation Rs . Cr 33 35 80 193 231 278 - Component mfg . compensation Rs . Cr 65 70 241 578 694 833
D OPERATING SURPLUS ( OS ) Average price of a unit USD 346
Exchange rate for 2015-2020 |
Rs ./ USD |
61.1 |
64.7 |
67.3 |
69.6 |
72.1 |
76.1 |
( IMF projections ) |
|
|
|
|
|
|
|
Operating surplus / output ratio |
% |
7.3 |
|
|
|
|
|
( Estimated from ASI 2012-13 ) |
|
|
|
|
|
|
|
Value of output ( estimated ) |
Rs . Cr |
5,288 |
5,996 |
14,356 |
25,842 |
39,840 |
56,116 |
FY20 ( est .)
Operating surplus ( est .) Rs . Cr 384 436 1,043 1,878 2,895 4,078
E
REVENUES |
|
|
Value Addition ( Comp . + OS ) |
Rs . Cr |
482 |
Central tax / GDP ratio % 10.7
541 1,365 2,649 3,820 5,188
Revenues ( PIT + CIT + IDT ) ( est .) Rs . Cr . 52 58 146 284 410 557
The underlying assumptions are as follows : Ø On the demand side , the following assumptions have been
Ø The average number of employees required for assembling made : 1 million PCs in the Indian IT industry is 658 presently . We • FY 15 and FY16 estimates are based on actual demand assume that the same number of employees would be • An increase of 10 % in demand is assumed for FY17 . required after enhancement of production in future .
Subsequently , an increase of 20 % in demand is
Ø The number of employees required for component assumed for FY18 , FY19 and FY20 . manufacturing is double the number of employees • The share of domestically manufactured PCs increases required for assembly presently . However , this multiple will from 24 % presently ( FY16 ) to 50 % in FY17 , 75 % in increase to 3 and then to 4 , depending upon the level of
FY18 , 90 % in FY19 and 100 % in FY20 , i . e . net zero import substitution of components in due course . imports is achieved by 2020 .
Ø The average salaries in PC assembly and component manufacturing is assumed to be Rs . 3 lakh pa for engineers , Rs . 2.4 lakh pa for technicians and Rs . 1.8 lakh for operators . The ratio of engineers , technicians , and operators is 1:1:8 . It is assumed that the salaries and ratio of the respective resources would remain the same in the near future .
Ø The average price of a PC is USD 346 presently . We assume that this would remain constant in the near future .
Ø The IMF projections for exchange rates over the next 5 years have been used to arrive at the value of output in INR .
Ø Operating surplus of companies in the IT industry has been estimated using the operating surplus to output ratio for the electronics manufacturing industry from the Annual Survey of Industries ( ASI ) 2012-13 .
Ø For estimating the tax revenues accruing from value addition in the IT manufacturing industry , the Central tax / GDP ratio for FY16 has been used .
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