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IESA welcomes budget boost for ESDM industry

Posted: 28 Feb 2013     Print Version  Bookmark and Share

Keywords:Budget  electronics and semiconductor industry  set-top boxes  fab  R&D 

"The India Electronics and Semiconductor Association (IESA) welcome the budget for its boost to the Indian electronics and semiconductor industry. We believe the steps outlined for this sector by the Finance Minister will help to boost this sector by attracting investments, promoting entrepreneurship and domestic manufacturing," India Electronics and Semiconductor Association (IESA) President PVG Menon and Chairman Satya Gupta said in a joint statement.

The India Electronics and Semiconductor Association welcomes the following initiatives:

 • About the investment allowance of 15% in addition to the current depreciation benefits, the IESA believes this will significantly aid in attracting investments into this sector.

 • The increase in import duty on set-top boxes (STBs), which is one the fastest moving electronics products today, is welcomed. There is a potential for 11 crore STBs over the next 2-3 years as a result of the digitisation of cable act, and we believe this increase of import duty will help Indian manufacturers to address the Unfair advantage imported set top boxes are getting and will boost domestic manufacturing of set-top boxes in India.

 • The 0% customs duty for import of equipment for the fab will help in improving the viability of the project for the investors.

More articles on Budget 2013-14
 •  Budget 2013: Highlights
 •  'Budget 2013 average-good for ESDM sector': F&S
 •  Budget 2013: What industry wants?
 •  Hike customs duty on smartphones, tablets: F&S
 •  IESA seeks speedy implementation of GST
 •  MAIT recommends measures to boost IT hardware.

 • 17% increase in the outlay on education. Both skill development and R&D are areas that are critical to India. IESA also welcomes the Rs.10,000 grant for youth who will undergo an NSDC approved Skill Development Course and obtain certification.

 • The Rs.200 crore fund to be setup to help innovators and inventors scale up their inventions and develop products aimed for the masses.

 • IESA welcomes the support to kick start the entrepreneurial ecosystem in India, especially the following two initiatives: 1) investments in technology incubators established in academic institutions being recognised as CSR. 2) The decision to recognise angel investor pools under SEBI guidelines will also help to grow this segment and encourage HNI's to come forth and invest as Angel Investors, thus helping again to grow the entrepreneurial ecosystem

 • The Budget will also benefit the MSME sector through the measure of doubling the SIDBI's refinancing facility to MSMEs to Rs 10,000 crore

 • IESA welcomes the strong commitment to infrastructure development particularly the continued support to the DMIC and the two other infrastructure corridors of Chennai – Bengaluru and Bengaluru – Mumbai.

 • Establishment of the National Clean Energy Fund will provide low cost funding through IREDA to clean and green energy projects as it will help to boost the renewable energy sector.

 • IESA also welcomes the announcement to notify the rules for safe harbor for the development centres based on the report of the Rangachary Committee, which will submit its report March 31, 2013.

 • The setting up of a Standing Council of Experts in Ministry of Finance to examine transaction cost of doing business in India is a welcome move which will help in ease of doing business in the country

Provisions yielding adverse impact
Higher excise duty on mobile phones above Rs.2,000. This is a blow to domestic mobile handset makers, as excise duty on instruments priced above Rs.2,000 has been raised to 6% from the earlier rate of 1%.

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