IT-market growth to come from stable policies: MAIT

MAIT, a body representing India’s IT hardware, training and designs and manufacturing has raised the need of a stable policy regime, and growth-oriented measures to boost IT hardware industry of the country, in a memorandum to the ministry of finance, Government of India.

''With lower-than-expected consumption of IT products in the Financial Year 2011-12 owing to the Thailand flood and Rupee devaluation, we are now hoping for a long-term growth-oriented and investment friendly policies to provide much needed drivers,'' said Dr Alok Bhardwaj, president, MAIT.

''India's IT hardware industry was $16 billion or Rs 70,000 crore in size in the year 2010-11. Less than one third of this was India manufactured. This must change,'' he further added.

The memorandum given to the finance ministry has seven vital recommendations for Union Budget 2012-13 including- removal of anomaly in inverted duty structure & abolition of four percent special additional duty (SAD); withdrawal of MRP based assessment for IT products; custom duty correction for lenses & accessories; abolition of MAT and continuance of exemption benefits on manufacturing in nominated areas as well as schemes; correction of double taxation in AMCs (Annual Maintenance Contracts) as both goods and as services; confirmation on GST implementation timelines; and clear guidelines on transfer pricing to eliminate ambiguity & unpredictability to enhance investor's sentiments.

MAIT has also announced new initiatives as an expansion of its charter and goals for the year 2012 which include- launch of E-waste information exchange portal in 90 days; expansion of membership to include recyclers, SI, SME, channels associations; sectoral skill development centers, and R&D centers; launching of green IT chapter and e waste recycle chapter.