Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post

India Electronics and Semiconductor Association (IESA) presents their budget recommendations to the government

- Advertisement -

The India Electronics and Semiconductor Association (IESA), the premier trade body, representing the Indian Electronic System Design and Manufacturing (ESDM) and Semiconductor industry presented their recommendation to the Government of India for the Union Budget 2013 – 14. The IESA’s recommendations cover two primary areas, namely Electronic System Design & Manufacturing (ESDM) and Semiconductor Design.

“For India to achieve self-sufficiency in electronics, the Government of India needs to focus on: policies that enable India to become self-sufficient in making globally competitive electronics products. Given the talent in the country, I see no reason why India cannot become a global leader in electronics in the near future,” said Dr. Satya Gupta, Chairman, India Electronics and Semiconductor Association (IESA).

“The Electronic Systems Design & Manufacturing (ESDM) industry presents a $ 400 billion opportunity by the year 2020. Semiconductor content is increasing in the Bill of Materials (BoM) of electronic products. India has emerged as one of the leading countries in the semiconductor design, with 23 of the top 25 MNCs having their design centres in here. The semiconductor design industry generated revenues of USD 8.8 billion in the year 2011 and has witnessed a robust growth of 17.3% since the year 2009. Hence we urge the Govt of India to take proactive steps to encourage this sunrise industry,” said Mr. PVG Menon, President, India Electronics and Semiconductor Association (IESA).

- Advertisement -

In their proposals relating to Electronic Systems Design & Manufacturing (ESDM), the IESA has made the following recommendations:

Encouraging domestic electronics manufacturing and product development – Building the domestic electronics industry is a very important item for national agenda, from security, self-reliance as well as future business potential. There is an urgent need to take actions to stimulate the domestic electronics industry and build brand India by encouraging locally designed products for local and global markets.

Towards this end, the following proposals have been submitted:

Correction of anomalies in taxes and duties

i) Speedy implementation of GST

Urgent implementation of GST. Rationalised indirect tax structure of 12% GST (8% Excise + 4% VAT) on the electronics manufacturing value chain

ii) Correction of inverted duty structure

Anomalies in inverted duty structure should be removed. Import of finished electronic products should be subject to mandatory inspection and certification.

iii) Preference must be given to domestically manufactured electronics products in government purchases, to encourage local manufacturing. Aggressive targets should be set for domestic procurement, so that companies – both Indian and foreign – are encouraged to setup high-value add manufacturing units within India.

iv) Total Exemption from Service Tax for SEZ and EMC’s

Total exemption from Service Tax for SEZ has been restricted to only those services rendered inside the SEZ. Services rendered outside SEZ come under the scheme of refund by the Government. In order to obtain the refund, there is a cumbersome procedure and slow process, under which one has to submit all original supporting documents to the concerned authorities. It is suggested that units in SEZ as well as the proposed Electronic Manufacturing Clusters (EMC’s) be totally exempted from Service Tax.

Status of physical exports to locally manufactured ITA-I products sold in India

With signing of the ITA-I agreement, customs duty on 217 tariff lines were brought to zero between 1998-2005. Industry suffered on account of incidence of inverted duty structure for a prolonged period. This has resulted in severe erosion of ICTE manufacturing in the country.

Supply of ITA-1 products by DTA units into the domestic market should be made eligible for physical export benefits, and should be extended the following benefits to promote domestic electronics manufacturing:

· Refund of duties suffered

· Incentives under the Focus Products Scheme and

· Income Tax benefits.

· Creation of fund to reduce disability cost

High cost of finance, power, logistics and procedural transactions add to disabilities. This discourages investments in electronics manufacturing, which require large and long term investments necessitating a supportive fiscal and infrastructural environment.

The IESA suggests that a fund be created to provide 4% interest subvention for working capital and term loan requirement of the ICTE sector. The IESA also recommends that procedural delays should be reduced to reduce transaction costs.

In their Proposals for semiconductor design the IESA has made the following recommendations:

Incentives for R&D

The Indian semiconductor design sector needs to be extended fiscal and regulatory support to grow. Semiconductor fabrication entails large capital investment of the order of few billion dollars, depending upon the technology node, which can only be looked at by large corporates, with requisite support from the Government. Currently there is no state-of-the-art chip fab facility in the country, which can cater to commercial applications exposing India to both strategic and supply chain risks.

The IESA proposes that R&D benefits under Section 35(2AB) of the Income Tax Act be extended to the semiconductor design companies and that the current condition that this benefit be available only to the in-house design centres of manufacturing companies may be waived

These measures will immensely benefit the establishment of a large number of semiconductor design companies, which will help realize the important objective of NEP-2012 to achieve turnover of $ 55 billion in semiconductor design by 2020.

- Advertisement -

Most Popular Articles

Optical Fibre Connecticity-Ladakh

Indian Army Installs Optical Fiber Connectivity In Siachen And Daulat Beg Oldi 

0
Ongoing infrastructure projects, such as the new road to Daulat Beg Oldie (DBO), are set to significantly improve logistical support for troops deployed in...

Lumax Auto Buys 60% Of Greenfuel Energy For Rs 153.09 Cr

0
This collaboration with Greenfuel enables LATL to expand and diversify its range of solutions for automotive OEMs in India. Lumax Auto Technologies has completed the...

River Launches Updated Indie Electric Scooter With Chain Drive And New Colors

0
The revamped Indie now comes with a single-speed gearbox and a chain drive, enhancing both durability and cost-effectiveness. It is also available in two...

Ola Unveils S1 Z Electric Scooter Priced At Rs 59,999

0
The S1 Z operates with two detachable 1.5kWh battery packs and features 14-inch wheels. Ola Electric has recently expanded its lineup of electric scooters by...

Mahindra Unveils Electric BE 6e And XEV 9e Models

0
Deliveries are scheduled to start in late February or early March 2025, following a phased market introduction that begins in January 2025. Both models...
Bejoy George, Managing Director- Chipmax Designs Private Limited,

“We Are Advancing R&D Projects To Develop Modular Assembly Lines With Adaptive Robotics” –...

0
How do you envision technological progressions influencing the future of manufacturing operations? Get informed from Electronics for You’s Akanksha while in dialogue with Bejoy...
Srinivas Parikshith, Co-founder of Auckam Technologies

“We Anticipate Turnover Reaching 40 Million Rupees Next Year With The New Product Line”...

0
Discussing the electronics manufacturing sector, Srinivas Parikshith, Co-founder of Auckam Technologies, talked to EFY’s Nitisha Dubey about their expansion plans to set up a...

“We Bring Intelligence Early On Into The Design Cycle” – Michel Van Cotthem VP...

0
With a solution embedding intelligence early in the design-to-source lifecycle, Supplyframe aims to leverage India’s electronics manufacturing boom. At IEW 2024, Michel Van Cotthem...
Vijai Karthick Selvam, Director of Teqtis

“We Do Everything From The Initial Concept To The Final Box Build” – Vijai...

0
Why are testing and R&D essential to combat printed circuit board manufacturing challenges? Speaking to EFY's Nitisha Dubey, Vijai Karthick Selvam, Director of Teqtis,...
Abhishek Malik, Executive Director, Calcom Vision Ltd

“India’s Electronics Sector Is Growing Rapidly, Making This The Decade For Investors To Engage”...

0
From the complexities of manufacturing and sourcing components to testing processes that drive innovation, know all the exciting dynamics shaping this ever-evolving industry in...

HKTDC Electronics Fair Sparks Innovation, 60,000+ Participants!

0
Showcasing cutting-edge tech, global innovation, and booming markets for the future of electronics, HKTDC’s Hong Kong Electronics Fair and electronicAsia drew 60,000+ professionals. Last month,...
Applied Materials Representational Image

Applied Materials Selects Six Startups For Deep-Tech Accelerator Programme

0
The selected deep-tech startups will be evaluated for investment by Applied Ventures and potential collaboration opportunities with Applied Materials. In collaboration with the company's India...

Space tech Startup Akash Secures $68M CHIPS Funding

0
Eyeing to power into AI, EVs, and more high-tech industries, Akash Systems lands $68 million CHIPS grant to boost its cooling tech facility, generating...

Wireless Light-Based Communication With Velmenni’s Technology

0
Velmenni is at the forefront of wireless communication innovation with its pioneering light-based technologies, Li-Fi and LC Link. Founded by Deepak Solanki in October 2014...

Harnessing AI Technology For Efficient Pest Management

0
AI-Genix, an agri-tech startup, is transforming pest management for farmers through advanced AI-enabled systems that precisely target harmful pests. In an industry where pesticides and...

Industry's Buzz

Optical Fibre Connecticity-Ladakh

Indian Army Installs Optical Fiber Connectivity In Siachen And Daulat Beg Oldi 

0
Ongoing infrastructure projects, such as the new road to Daulat Beg Oldie (DBO), are set to significantly improve logistical support for troops deployed in...

Lumax Auto Buys 60% Of Greenfuel Energy For Rs 153.09 Cr

0
This collaboration with Greenfuel enables LATL to expand and diversify its range of solutions for automotive OEMs in India. Lumax Auto Technologies has completed the...

River Launches Updated Indie Electric Scooter With Chain Drive And New Colors

0
The revamped Indie now comes with a single-speed gearbox and a chain drive, enhancing both durability and cost-effectiveness. It is also available in two...

Ola Unveils S1 Z Electric Scooter Priced At Rs 59,999

0
The S1 Z operates with two detachable 1.5kWh battery packs and features 14-inch wheels. Ola Electric has recently expanded its lineup of electric scooters by...

Mahindra Unveils Electric BE 6e And XEV 9e Models

0
Deliveries are scheduled to start in late February or early March 2025, following a phased market introduction that begins in January 2025. Both models...

Learn From Leaders

Bejoy George, Managing Director- Chipmax Designs Private Limited,

“We Are Advancing R&D Projects To Develop Modular Assembly Lines With Adaptive Robotics” –...

0
How do you envision technological progressions influencing the future of manufacturing operations? Get informed from Electronics for You’s Akanksha while in dialogue with Bejoy...
Srinivas Parikshith, Co-founder of Auckam Technologies

“We Anticipate Turnover Reaching 40 Million Rupees Next Year With The New Product Line”...

0
Discussing the electronics manufacturing sector, Srinivas Parikshith, Co-founder of Auckam Technologies, talked to EFY’s Nitisha Dubey about their expansion plans to set up a...

“We Bring Intelligence Early On Into The Design Cycle” – Michel Van Cotthem VP...

0
With a solution embedding intelligence early in the design-to-source lifecycle, Supplyframe aims to leverage India’s electronics manufacturing boom. At IEW 2024, Michel Van Cotthem...
Vijai Karthick Selvam, Director of Teqtis

“We Do Everything From The Initial Concept To The Final Box Build” – Vijai...

0
Why are testing and R&D essential to combat printed circuit board manufacturing challenges? Speaking to EFY's Nitisha Dubey, Vijai Karthick Selvam, Director of Teqtis,...
Abhishek Malik, Executive Director, Calcom Vision Ltd

“India’s Electronics Sector Is Growing Rapidly, Making This The Decade For Investors To Engage”...

0
From the complexities of manufacturing and sourcing components to testing processes that drive innovation, know all the exciting dynamics shaping this ever-evolving industry in...

Startups

HKTDC Electronics Fair Sparks Innovation, 60,000+ Participants!

0
Showcasing cutting-edge tech, global innovation, and booming markets for the future of electronics, HKTDC’s Hong Kong Electronics Fair and electronicAsia drew 60,000+ professionals. Last month,...
Applied Materials Representational Image

Applied Materials Selects Six Startups For Deep-Tech Accelerator Programme

0
The selected deep-tech startups will be evaluated for investment by Applied Ventures and potential collaboration opportunities with Applied Materials. In collaboration with the company's India...

Space tech Startup Akash Secures $68M CHIPS Funding

0
Eyeing to power into AI, EVs, and more high-tech industries, Akash Systems lands $68 million CHIPS grant to boost its cooling tech facility, generating...

Wireless Light-Based Communication With Velmenni’s Technology

0
Velmenni is at the forefront of wireless communication innovation with its pioneering light-based technologies, Li-Fi and LC Link. Founded by Deepak Solanki in October 2014...

Harnessing AI Technology For Efficient Pest Management

0
AI-Genix, an agri-tech startup, is transforming pest management for farmers through advanced AI-enabled systems that precisely target harmful pests. In an industry where pesticides and...