The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has advocated the need for reduction in import tariffs on security related electronic products by at least 50%. Import duties on most of the electronic security gadgets currently hovers around 37% and those telecom equipment and power conditioners, import duties are around 12.5%, which makes installation of security gadgets an expensive exercise.
The ASSOCHAM, therefore, has stressed an urgent need to slash import tariffs on electronics products to 18.5%, from over 37%, on telecom equipment and power conditioners to strengthen security nets in telecom, the private sector and in general for other areas.
ASSOCHAM President, Dr. Swati Piramal, in a representation to Ministries of Finance and Home Affairs, stated the government should not be unduly concerned about the revenue loss in terms of import duty tariffs on security products and gadgets by 50% through a notification, as India and its business can no longer afford to compromise on security.
The security industry has been growing at 25% for the last couple of years and is projected to grow many fold in next four to five years to meet security requirements. The size of the security business in India is currently estimated at Rs.22,000 crore which, according to ASSOCHAM, may cross Rs.50,000 crore in next few years.
At half the size of the security business, the import of security products components and gadgets comprise nearly 30 to 35% and one can imagine the burden on domestic security business through security gadgets imports. The ASSOCHAM also feels that, in subsequent years, the import tariffs should fall by less than 20% to enable India to help its citizens access security at an affordable cost.
ASSOCHAM also said that with falling import tariffs on security components, India would be able to increase security manufacturing on its own and with technological innovations gaining faster pace, fool-proof security could be ensured to help India remain immune to any possible security threats in the future.
The Chamber has also emphasized that sub-assemblies to be treated at par with finished products to promote EMS--an emerging area with huge potential.
Source : pcbdesign007.com