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Feb 24th, 2017 6:52 am | By | Category: LATEST NEWS

February 23,2017
(By Bhagyashree Pande)
Apple i phone manfacturers -Foxconn, Wistron; electric car maker Tesla are some of companies waiting to set up manufacturing facilities in India but they have demanded tax holiday a move that has set the govt thinking about how it will meet demands of such foreign manufacturers under the Make in India program and the new GST regime. These manufacturers have asked for custom duty reduction besides other exemptions,the govt has as yet not given a nod to any of these demands citing unfair treatment to other manufacturers. The govt is concerned about how India will be attractive in the new tax regime for foreign players who look at tax concessions as a bargaining chip to set up bases abroad ?

Whatever are the concerns of the govt on tax issues and exemptions one yardstick it should observe – are those setting up manufacturing in India getting in next gen technology to be manufactured in India? Of utmost importance is are they sourcing components from domestic players? It should not be a case of Foxconn or Wistron which is going to source only 30% components from domestic manufacturers and the rest will be imported from China. This way the Indian industry of components does not develop nor are the existing players getting any benefit from such players. Agreed that India cannot be a supplier of all components today some of which would be far sophisticated but then there is no point having a manufacturing facility which makes us just a assembling hub.. Instead govt must incentivize manufacturers who are keen to get new technologies so that we can make headway for a new industrial revolution which will change the way our manufacturing takes place as also employs highly qualified manpower which otherwise goes to foreign shores in search of jobs. To usher in a new industrial revolution this is an opportunity -loss of tax revenue , costs of getting new technologies and other exemptions should be kept aside for a while. This is the way car industry and capital goods industry with its sophisticated ancillaries developed in India let’s give electronics, computer,mobile component makers and other digital equipment makers (which could be used for other industries like healthcare) a chance to usher in the new industrial revolution this will be the true challenge of Make in India.

(This article has been taken from the below link as sent by the writer. THE NEWSMAN OF INDIA.COM does not take any responsibilty taking this article into consideration)
New technology challenge for Make in India

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