Experts are of the opinion that a slew of tax initiatives announced in Union Budget 2010-11 augurs well for
Budget to ensure competitive edge The industry has welcomed the move of reduction in customs duty on liquid crystal display (LCD) panels from 10% to 5% as they believe that the step will bolster LCD television manufacturing in the country. This will particularly benefit Indian electronic companies such as Mirc and Videocon to catch up with foreign firms like Samsung and Sony as the latter boasts of their own manufacturing plant to roll out LCD panels and TVs. In this context, Kamal Saxsena, managing director of Mascot Office Systems Limited, a mid-sized manufacturer of LCD panels in Innovation: Need of the hour However, analysts also cautioned that the sector must not only rely on these tax initiatives, but also bring in innovation in their products to find more takers. “One cannot be sure when these tax benefits will be waived off. Therefore, it is vital for Indian electronic hardware manufacturers to regularly undertake R&D activities to upgrade their products,” comments Vivek Kumar Saha, managing director of Choudhary Enterprises, a small-sized computer hardware dealer in Kolkata. Experts also pointed out that the sector must maintain the balance between imported and local components. Imports should be encouraged only for components (like painted circuit board) that do not have adequate local vendor base, but the same is not a viable option for components like semiconductor integrated circuits. Arup Choudhury |
