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With the Finance Minister Arun Jaitley all
set to present the first Budget of the
Narendra Modi-led NDA government, in this
e-interview with Rakesh Rao, Anirudh
Dhoot , President, Consumer Electronics and
Appliances Manufacturers Association
( CEAMA) and Director, Videocon, proposes
steps that the new government should take
to revive the consumer electronics industry.
What are your expectations from the new
government?
The consumer durable industry is all set to
ride high with the emergence of the new
Government, as new policies and initiatives
will pave the way for growth and
advancement. The newly formed
Government has already indicated a clear
tax policy and interest rate rationalisation
which would help in the growth of
manufacturing industries. With the ensuing
Budget aiming to stabilise the economy, we
expect a turnaround in the consumer
sentiments.
The relief provided to the industry, via
interim budget, through significant
reductions in the Excise Duty , from 12% to
10% on products, inputs and parts, has
helped the sector. CEAMA would request for
this continued support in this fiscal as the
industry is still struggling and Index of
Industrial Production (IIP ) has not shown a
healthy growth. CEAMA foresees an
improvement in the industry standards,
eradication of grey markets and an overall
boost to the sector from the new
Government.
The digitalisation of cable TV has created
huge demand for set top boxes in the
country and it is likely to reach 75 million
units for next one to two years. Thus, it is
very important to manufacture Set Top
Boxes in the country. However industry
would need proper incentives to boost Set
Top Box manufacturing in the country.
CEAMA recommends that the provision of
‘C’ form waver should be applicable to set
top boxes. Currently, Indian manufacturers
have to pay 12.5 to 14% VAT as Cable and
DTH operators do not provide them ‘C’
Form, since they are leasing out boxes.
However, DTH operators do not pay any
VAT when they import the boxes. Set top
box industry provides huge potential for
economic activity, employment generation
and saving valuable foreign exchange and
increased revenue for the Government.
What measures should the government
take to revive the consumer electronics
industry?
The consumer electronics industry is
currently struggling due to sluggish market
and bleak weather conditions. In order for
the industry to bounce back, CEAMA has
proposed recommendations keeping in mind
the twin objectives of manufacturing
growth & also increasing demand of the
products.
We strongly propose removal of the Inverted
Duty structure on consumer electronics and
home appliances, arising due to
implementation of free trade agreements .
We also recommend to review the existing
FTAs which have not been in favour of the
industry overall and not to sign any new
FTAs for next 5 years. Government should
also accelerate implementation of uniform
Goods & Service Tax ( GST) that will lower
transaction costs. Do not to sign any new FTAs for next 5 years: Anirudh Dhoot | Business Standard News
set to present the first Budget of the
Narendra Modi-led NDA government, in this
e-interview with Rakesh Rao, Anirudh
Dhoot , President, Consumer Electronics and
Appliances Manufacturers Association
( CEAMA) and Director, Videocon, proposes
steps that the new government should take
to revive the consumer electronics industry.
What are your expectations from the new
government?
The consumer durable industry is all set to
ride high with the emergence of the new
Government, as new policies and initiatives
will pave the way for growth and
advancement. The newly formed
Government has already indicated a clear
tax policy and interest rate rationalisation
which would help in the growth of
manufacturing industries. With the ensuing
Budget aiming to stabilise the economy, we
expect a turnaround in the consumer
sentiments.
The relief provided to the industry, via
interim budget, through significant
reductions in the Excise Duty , from 12% to
10% on products, inputs and parts, has
helped the sector. CEAMA would request for
this continued support in this fiscal as the
industry is still struggling and Index of
Industrial Production (IIP ) has not shown a
healthy growth. CEAMA foresees an
improvement in the industry standards,
eradication of grey markets and an overall
boost to the sector from the new
Government.
The digitalisation of cable TV has created
huge demand for set top boxes in the
country and it is likely to reach 75 million
units for next one to two years. Thus, it is
very important to manufacture Set Top
Boxes in the country. However industry
would need proper incentives to boost Set
Top Box manufacturing in the country.
CEAMA recommends that the provision of
‘C’ form waver should be applicable to set
top boxes. Currently, Indian manufacturers
have to pay 12.5 to 14% VAT as Cable and
DTH operators do not provide them ‘C’
Form, since they are leasing out boxes.
However, DTH operators do not pay any
VAT when they import the boxes. Set top
box industry provides huge potential for
economic activity, employment generation
and saving valuable foreign exchange and
increased revenue for the Government.
What measures should the government
take to revive the consumer electronics
industry?
The consumer electronics industry is
currently struggling due to sluggish market
and bleak weather conditions. In order for
the industry to bounce back, CEAMA has
proposed recommendations keeping in mind
the twin objectives of manufacturing
growth & also increasing demand of the
products.
We strongly propose removal of the Inverted
Duty structure on consumer electronics and
home appliances, arising due to
implementation of free trade agreements .
We also recommend to review the existing
FTAs which have not been in favour of the
industry overall and not to sign any new
FTAs for next 5 years. Government should
also accelerate implementation of uniform
Goods & Service Tax ( GST) that will lower
transaction costs. Do not to sign any new FTAs for next 5 years: Anirudh Dhoot | Business Standard News
