Much needed fo­cus on dig­i­ta­tion

Electrical Monitor - - BUDGET REACTIONS -

ith an im­por­tant fo­cus on dig­i­ta­tion, the govern­ment has shown good in­tent in keep­ing up the mo­men­tum of the Make In In­dia and Dig­i­tal In­dia Mis­sion. The govern­ment has shifted its fo­cus from large cities to ru­ral ar­eas show­ing a clear in­tent to up­lift those who be­long to the bot­tom of the pyra­mid, es­pe­cially the agri­cul­tural sec­tor and fo­cus on cre­at­ing skilled labour.

The ef­fort to in­cen­tivize the Make in In­dia pro­gram by way of do­mes­tic value adding in the Elec­tron­ics Man­u­fac­tur­ing Sys­tems seg­ment is a step in the pos­i­tive di­rec­tion as is the re­mov­ing of cus­tom du­ties. This au­gurs well for us as ma­jor­ity of the spend­ing in our in­dus­try is on im­ported ESDM [Elec­tronic Sys­tem De­sign & Man­u­fac­tur­ing] items. From a tax­a­tion stand­point, low­er­ing of Cor­po­rate IT Tax for com­pa­nies not ex­ceed­ing Rs.5 crore turnover to 25 per cent plus sur­charge is a pos­i­tive move as it of­fers in­cen­tives to SMEs and SMBs in the coun­try to fo­cus on their growth. An­other pro­posal that will ben­e­fit the coun­try and stim­u­late start-ups on the growth tra­jec­tory is the amend­ments to the tax­a­tion for new man­u­fac­tur­ing com­pa­nies in­cor­po­rated af­ter is March 1, 2016 as they will now have the op­tion to be taxed at 25 per cent plus sur­charge and cess pro­vided they do not claim profit linked to in­vest­ment. — Su­nil Khanna, Pres­i­dent & Man­ag­ing Di­rec­tor, Emerson

Net­work Power In­dia.

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