The Ministry of Communications and IT has reported a rise in imports of telecom equipments from Rs 615.39 billion in 2012-13 to Rs 741.16 billion in 2013-14. In 2011-12, telecom equipment import in the country was Rs 594.47 billion.
According to the ministry, the domestic manufacturers have been paying taxes on the imports of various components which are outside the domain of Information Technology Agreement (ITA). A basic customs duty of 10 per cent has been specified on telecom products not covered under ITA. Further, the electronic products have to pay an education cess to ensure parity between domestic and imported products.
Further, the set-top boxes have been declared a part of the telecom network, which will reduce their prices. The decision will result in two per cent central sales tax on interstate sales and make them more competitive to imports.
Two government schemes, Electronics Manufacturing Clusters to financially assist in creating world class infrastructure for electronics manufacturing units and Modified Special Incentive Package Schemes (M-SIPS) to provide financial stimulus to offset disability and attract investments in the manufacturing of electronics products, will provide incentives for domestic manufacturing of telecom equipments. Also, the ministry has announced to give preference to 23 categories of telecom products in government procurement.
