Wait...
  1. Home >
  2. Export Import News >
  3. Economy News >
  4. Mobile firms seek 10 year tax holiday, regulatory reforms to grow 11-fold to $230 billion >
  5. Mobile firms seek 10 year tax holiday, regulatory reforms to grow 11-fold to $230 billion

Online Export Import Data Search

recentSearch
Complete Training Video : Click Here

Mobile firms seek 10 year tax holiday, regulatory reforms to grow 11-fold to $230 billion.


Date: 19-11-2018
Subject: Mobile firms seek 10 year tax holiday, regulatory reforms to grow 11-fold to $230 billion
Mobile handset companies have sought a 10-year tax holiday along with regulatory reforms to focus on exports that can enable the industry to grow by over 11-fold to USD 230 billion by 2025, an ICEA-McKinsey report submitted to the government said.

"If India extends its ambitions to the export market, it could manufacture around 1,250 million handsets by 2025. This could fire up an industry worth around USD 230 billion and create more than 47 lakh jobs in the process," the joint report by Indian Cellular and Electronics Association (ICEA) and McKinsey said.

It said the new jobs can be created in assembly, programming, testing and packaging (APTP) operations, among others.

The demand for mobile devices in the domestic market is now tapering and prompting a shift in focus from 'Making in India for India' to 'Making in India for the world', which needs policy support including 10 year tax holiday and reduction of various duties specially on capital goods that are used for mobile manufacturing, it said.

Since 2014, around 120 manufacturing units in the mobile manufacturing segment have come up with support of government policy and on the back of strong domestic market demand.

India produced 225 million mobile phones in 2017 worth USD 20 billion, with exports of around USD 0.1 billion, the report said.

"If India restricts itself to making mobile handsets and components only for India, it would be likely to manufacture only 450 million handsets and employ 18 lakh people for an industry worth around USD 80 billion by 2025," the report said.

It recommended change in current policies around taxes, labour laws and e-waste for orientation of industry towards the overseas market and to attract core manufacturing processes of leading global brands.

"Just in the Apple supplier eco-system over 30 suppliers with annual revenues greater than USD 1 billion have set up manufacturing operations in China. The top 15 component suppliers earned over USD 80 billion in annual revenues in 2016 alone, on a capex investment of around USD 96 billion since 2007," the report said.

According to the data, the phased manufacturing program of the government attracted 51 component manufacturing units in 2016 but only 10 units were set up in 2017.

"Competing countries such as Vietnam and China offer a 10 to 15 percent corporate income tax rate for up to 30 years Therefore, we recommend a 10-year tax holiday on a block of 15 to 20 years on all profits for mobile handset or related component manufacturing, subject to value addition norms," the report said.

Source: moneycontrol.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 20-08-2019
Notification No. 36/2019 – Central Tax
Seeks to extend the date from which the facility of blocking and unblocking of e-way bill facility as per the provision of Rule 138E of CGST Rules, 2017 shall be brought into force to 21.11.2019.

Date: 19-08-2019
PUBLIC NOTICE No. 26/2015-2020
TRQ quota for import of 30,000 MT of crude soya oil from Paraguay under India- Mercosur Trade Agreement is notified.

Date: 16-08-2019
A.P. (DIR Series) Circular No. 06
Foreign Exchange Management (Deposit) (Amendment) Regulations, 2019 – Acceptance of Deposits by issue of Commercial Papers

Date: 14-08-2019
Notification No.60/2019 - Customs (N.T.)
Exchange Rates Notification No.60/2019-Custom(NT) dated 14.08.2019.

Date: 14-08-2019
Notification No. 61/2019-CUSTOMS (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver- Reg.

Date: 14-08-2019
PUBLIC NOTICE NO. 25/2015-2020
Modification of Para 4.12(vi) of HBP and addition of Appendix 4P to Hand Book of Procedures 2015-20 – reg.

Date: 13-08-2019
Notification No.59/2019 - Customs (N.T.)
Exchange Rates Notification No.59/2019-Custom(NT) dated 13.08.2019.

Date: 13-08-2019
Instruction No. 03/2019-Customs
Recovery of Export benefits given under incentive and Reward Schemes under Chapter 3 of FTP on re-import of export goods.

Date: 10-08-2019
NOTIFICATION No. 32/2019-Customs (ADD)
Seeks to impose anti-dumping duty on imports of "Homopolymer of vinyl chloride monomer (suspension grade)" originating in or exported from China PR and USA for 30 months with effect from 13th August, 2019, in pursuance of SSR investigation by DGTR.

Date: 08-08-2019
Notification No. 57/2019-CUSTOMS (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver.



Exim Guru Copyright © 1999-2019 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o Infodrive India
E-2, 3rd Floor, Kalkaji Main Road
New Delhi - 110019, India
Phone : 011 - 40703001