ap7am logo
Logo Bar bseindia nse-india msn yahoo youtube facebook google thehindu bbc ndtv v6 ABN NTv Tv9 etv namasthetelangaana sakshi andhrajyothy eenadu ap7am bhakti espncricinfo wikipedia twitter

IT industry seeks duty removal to ease component imports

Tue, Jan 27, 2015, 12:35 PM
New Delhi, Jan 27: The Indian information technology (IT) industry is to seek the government's help to do away with the four percent duty on imported electronics components as that is becoming counter-productive.

"We want to recommend to the government removal of Special Additional Duty (SAD) of four percent on all electronics components that are imported to the country. Importing finished products is becoming cheaper than importing components," Anwar Shirpurwala, executive director, Manufacturers' Association of Information Technology (MAIT), told IANS.

MAIT is the apex body of India's IT hardware industry.

Removing SAD "will address the inverted duty structure, place a domestic manufacturer on a par with a trader from a customs duty cost perspective, create a level playing field and thereby encourage manufacture of ITA (Information Technology Agreement) goods in India," said MAIT in its budget recommendations, a copy of which is with IANS.

The World Trade Organization (WTO)-led ITA guarantees zero-tariff and duty-free trade in hundreds of products.

The ministry of IT & Communications estimates that India's demand for IT hardware & electronics is expected to touch $400 billion by 2020. With the current rate and base of domestic production, an expected $320 billion worth of IT hardware & electronics is expected to be imported into India to cater to the burgeoning demand.
Agency: IANS

Feedback Form

Your IP address: