Niti Aayog’s recommendation on strategy for making electronics products in India

  • In a bid to boost manufacturing of electronic products in India, Niti Aayog has recommended a strategy for making electronics products in India
  • It said that the govt should not shy away from pushing production of low value products in India that add value due to huge volumes o If produced on a large scale, low value addition per unit translates in a large total value addition & large number of jobs
  • It has also proposed that the Dept of Electronics & IT (Deity) & the Dept of Revenue should work towards ending tax uncertainty & simplify the tax regime
  • It also pitched for a 10-yr tax holiday for a firm that invests a substantial sum & generates a large employment within coastal economic zones. For this purpose an investment threshold of $1 bn with the employment of 20,000 may be considered o While this is part of the Aayog’s recommendations to spur exports, it has suggested a similar sop to substitute imports by offering a 10-yr tax holiday to anyone investing about $1 bn & creating around 15,000 jobs in the electronics industry
  • It also made a proposal to modify preferential market access policy of Deity to allow preference in govt procurement, especially in the area of defence o The preferential market access policy mandates all state depts, organisations & agencies to procure at least 30% of their equipment from the domestic market

Digiprove sealCopyright secured by Digiprove © 2017 IAS FUNDA