MAKE IN INDIA-TELECOM
Keynote Presentation on Budget Issues
By
NK Goyal, Chairman Emeritus TEMA
President CMAI, Vice Chairman ITU APT
Chairman, ITPS Dubai
Member, Governing Board Telecom Equipment and Services
Export Promotion Council (Govt. of India)
Before
Ministry of Communications & IT, Govt. of India
December, 2014
www.tematelecom.in, www.cmai.asia
Tema@tematelecom.in, president_cmai@cmai.asia
Compliments
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NDA Govt. committed for Make in India
27th December, Govt. announced preferential
purchase of indigenous manufactured products
by Govt. Departments
Ease of Doing Initiatives of Govt.
Govt. realization of crucial Centre-State
interaction
Telecom/ICT in boom and receiving Govt. focus
Presentation
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About Association
Where we are?
Make in India
Budget 2015-16
Innovations
ABOUT ASSOCIATION
CES, 2009 being inaugurated and ribbon cutting at Las Vegas on 8th January, 2009 by NK Goyal with Sir
Howard Stringer, Chairman & CEO of Sony Corporation, Mr. Tom Hanks, the American movie star,
Mr.Gary Yacoubian, Chairman CEA & President of Myer-Emco AudioVideo, Mr. Gary Saprio, Vice
President of CEA, Ms. Qu., Presixdent, CECC China, Mr. Patrick Lavelle, President and CEO of Audiovox,
Mr. Peter Lesser, President and CEO of X-10 (USA) Inc, Mr. Loyd Ivey, Chairman and CEO of MiTek
Electronics and Communications, Mr. Jay McLellan, President and CEO of Home Automation, Inc. (HAI),
Mr. Mike Mohr, President of Celluphone, Mr.Grant Russell, President of Kleen Concepts
TEMA CMAI
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TEMA- the only association promoting focused
approach for telecom equipment manufacturing since
1994
CMAI- the focused association for promotion of entire
sector of ICT-electronics, telecom, mobile, Cyber
Security, multimedia, convergence, applications in
education/health etc.
54 Worldwide MOU partners
Known for technical standards, testing, PSUs
Procurement manual
WHERE WE ARE?
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Telecom/ICT policy initiatives taken by DeITY and DOT.
DOT Member Production post vacant for several years
DOT – a development origination, committed for
development of indigenous manufacturing of telecom
equipments.
ITA 1- Not only Duty free, but without any
standard/testing/security clearances
Wholly dependent on Imports-likely to be soon more
than Oil Bill
Negligible Base in India
Make in India- Some Request
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PMA announced for Govt. Need to be extended to private
sector.
To address issue of Govt. Departments asking foreign
approval/restricting criteria for procurements.
To address issue of criteria of Past experience for new
startups/innovation companies
To address issue of trial spectrum IND 55 for evaluation and
trials
Need to make standards mandatory by TEC
Need to make testing mandatory by TEC
Need to implement security Clearances for all equipments
Need to address issue of PSUCs pricing dilemma for new start
ups and innovations.
Need to address PSUs- procurement delays due to false &
BUDGET ISSUES 2015-16 1-7
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1)
Grant of Infrastructure Status:
Grant of Infrastructure status to the domestic
telecom equipment manufacturing companies
complying with PMA provisions will help the industry
to take benefits of the incentives given to the
infrastructure sector.
BUDGET ISSUES- 2
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2)
Tax Holidays:
The domestic telecom companies manufacturing
products covered under PMA provisions may be
considered for a tax holiday of 10 years, similar to
the incentives extended to Power generation
companies.
BUDGET ISSUES-3
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3) Levy duties on non-ITA products: We
welcome the initiatives taken by the Government to
levy duties on non-ITA products in the last Union
Budget for the FY 2014-15, where some of the
telecom products have been brought under the duty
regime, to boost the domestic manufacturing of
these products in the Country.
In this regard we would like to bring to your notice
that there are many telecom / ICT products which
are somehow being imported into the Country under
‘OTHERS’ category.
BUDGET ISSUES-4
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4) Removal of Inverted Duties: Inverted duties
are one of the reasons for making imports more
attractive than manufacturing. In order to overcome
this disability, it is our humble submission that
Customs Duty, CVD and SAD may considered to be
removed from the import of the components which
are being used in the manufacturing of IT & telecom
products. This will help to create a level playing field
for the domestically manufactured products
BUDGET ISSUES 5
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5)
Deferred Payment of Excise Duty: Domestic
telecom equipment manufacturing companies complying
with the PMA provisions should be provided with the
deferred payment of Excise duty on such equipments on
an interest free basis for a period of 5 years. When the
GST gets implemented the corresponding benefits may
also be extended in that regime to domestic telecom
equipment manufacturers.
BUDGET ISSUES-6
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6) R&D support for technology
development: R&D and IPR creation are critical
factors for strengthening the manufacturing sector in
the country. In order to encourage more R&D in the
sector, we propose to introduce 5 % cess on user of
telecom services (service providers) to create a
corpus for supporting R&D for technology
development in telecom sector.
BUDGET ISSUES- 7
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7) Minimum Alternate Tax (MAT). There is high
capital intensive investment is required for setting up
the telecom / ICT manufacturing units. In order to
encourage more manufacturing units to come up in the
country, it is our request that Minimum Alternate Tax
(MAT) may fully exempted for the domestic telecom
equipment manufacturing units, which are complying
with the PMA provisions.
INNOVATION
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Innovation is a process of taking new ideas to satisfied customers.
it is the conversion of new knowledge into new products and
services.
Innovation differs from Invention or renovation in that innovation
generally signifies a substantial positive change compared to
incremental changes.
Frugal Innovation- increasingly fashionable concept, refers to No
frills reduced complexity, designing for durable, quality goods at
most economical rates, by using available materials for new and
overlooked markets, commonly called in India jugaad, but
actually meaning inclusive innovation, catalytic innovation, reverse
innovation etc.
RADICAL INNOVATIONS
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INCREMENTAL INNOVATIONS
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