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IESA Toasts the Union Budget 2016 – Experts Viz

The FM’s briefcase happened to be a bit lighter on accommodating the sentiments of the industry. Indeed! The multi-sectorial programs and multi-skill programs have driven the momentum of young business corridors, but might have overlooked the straying corners of manufacturing taxation reforms. The reiterated annexures was well-scooped on the vulnerable and destitution grounds, boosting the year as entrepreneurship for SC/ST & women and encourage entrepreneurship skills among the socially backward sections of the society. M.N Vidyashankar, President of the India Electronics & Semiconductor Association (IESA) and Vinay Shenoy, Chairman standpoints after the Union Budget 2016. Here is how the IESA veterans reacted.

M.N Vidyashankar

M.N Vidyashankar, President, IESA

 

Citing on the Start-up focus and reacting on Government’s INR 500 crore initiatives for Standup India, MN VIDYASHANKAR, PRESIDENT, IESA said, “Government has shown great intent in promoting the start-up ecosystem in India. With Government’s announcement to promote women entrepreneurship, and entrepreneurship in the SC/ST category, we will have an immense role to play along with MSME in making this initiative successful. We are honoured with government’s trust on associations like IESA and look forward to work in tandem to realise this socially important goal”.

He continues, “Investment exists in start-ups in two years qualifies as Long Term Capital Gains and this encourages angel/venture capital infusion. Further, the simplification of norms for forming a company along with 3 year tax holiday will spur entrepreneurs to establish start-ups. This reflects the commitment PM Modi made during the Start-up India Action Plan on Jan 16th. We are happy with Government’s initiative to boost local manufacturing and the start-up ecosystem in India, with their decision to allow rebates to the SMEs and also 100% deduction of profits to the start-ups.

With Government’s announcement to promote women entrepreneurship and entrepreneurship in the SC/ST category with a propose budget of INR500 crore, we will have a critical role to play along with MSME in making this initiative successful. We are honoured with Government’s trust on associations such as ours. We see this initiative as a great way to explore India Innovation Fun, IESA will work in tandem to realise this socially important goal.

On the skill development focus, Vidyashankar said, Government’s focus in promoting entrepreneurial skills is the right step taken towards the growth of the ecosystem. The Investments made by Govt. to build skilled workforce will help increase employment in the country. This initiative will give impetus to implementation of national programmes like Digital India, Make in India, Smart Cities as skilled workforce is at the core of the programs’ success, overall accelerating India’s economic development.

Government’s smart transportation initiative, “Glad to see focus on smart transportation from the government. It’s a known fact that the nation struggles with transportation related issues and we are pleased to see focus on implementing smart transportation through startup involvement”.

Digital literacy in rural India: Reaction on Government’s initiative on digital literacy, Governments’ plan to launch a mission to provide digital literacy in rural India will enable India to transform for a better tomorrow. When the nation is going smart, rural need to be smarter as they hold the nation’s wholesome development. We would like to see an equal dedication from corporate India in order to make this initiative a success.

Excise duty: Amendment on excise duty, Exemption of BCD and SAD for ATMP for semiconductor wafer fabrication / LCD fabrication is a very well planned move and will certainly give a boost to local manufacturing especially to SMEs. Similar exemption extended to parts and components, sub parts for manufacturing of charger, adaptors, mobile phones, routers, modems, set- top boxes etc., will significantly go a long way in encouraging local production. Imposition of BCD on finished products like telecom equipment etc., is a very well thought out to enhance domestic manufacturing and reducing import dependence. Reduction of BCD on specific capital goods for manufacturing of various fuses is a boost to component manufacturing and enriching the supply chain.

Vinay Shenoy

Vinay Shenoy, Chairman, IESA

 

Vinay Shenoy, Chairman, India Electronics and Semiconductor Association underlines:

Agriculture focus: 

Government’s focus on agriculture will bring an accelerated pace to the growth of tech companies working in the agriculture space. With companies already aggressively addressing the agriculture needs with innovative Internet of Things solutions, we foresee this initiative to be a collaborative effort among such tech companies, government and the farmers. This will also strengthen the initiative start-up ecosystem in order to enable smart agriculture

Health sector:

Health insurance for senior citizens will require establishing more healthcare centres and connectivity to tertiary healthcare centres and deployment of medical equipment

Adhaar & IT:

The government focus on bringing Adhaar framework through Social Security Platform would require immense technology support and we have the capabilities as well. The entire transformation of citizenship identity to a uniform platform has brought lots of cheer in the IT eco system.

Make in India:

Imports of assembled sub-systems like charger/adapter, battery and wired headsets/speakers for manufacture of mobile phone will cost 16.5% more due to withdrawal of Basic Customs Duty and Special Additional Duty. On the other hand, inputs, parts and components, subparts for manufacturing these and other electronics sub-systems have been reduced to 0%. Further, imports of populated Printed Circuit Boards will cost 2-4% more. Both these reflect a strong commitment to promote local value additions in electronics.

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Niloy Banerjee

A generic movie-buff, passionate and professional with print journalism, serving editorial verticals on Technical and B2B segments, crude rover and writer on business happenings, spare time playing physical and digital forms of games; a love with philosophy is perennial as trying to archive pebbles from the ocean of literature. Lastly, a connoisseur in making and eating palatable cuisines.

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