Q. What are your expectations from the new government and the upcoming Budget?
A. The consumer durable industry is all set to ride high with the emergence of the new government, as new policies and initiatives will pave the way for growth and advancement. The newly formed government has already indicated a clear tax policy and interest rate rationalization which would help in the growth of manufacturing industries.
With the ensuing Budget aiming to stabilize the economy, we expect a turnaround in consumer sentiment. The reduction of excise duty in the Interim Budget from 12 per cent to 10 per cent on products, inputs and parts had come as a great relief for the industry and helped the sector.
CEAMA welcomes the finance ministry's move to extend the excise duty concession till December 2014. CEAMA would request for this continued support even beyond December 2014 as the industry is still struggling and the index of industrial production has not shown a healthy growth. CEAMA further foresees an improvement in the industry standards, eradication of grey markets and an overall boost to the sector from the new government.
The digitalization of cable TV has created huge demand for Set Top Boxes in the country and it is likely to reach 75 million units for next one to two years. Thus, it is very important to manufacture Set Top Boxes in the country.
However, industry would need proper incentives to boost Set Top Box manufacturing in the country. CEAMA recommends that the provision of 'C' form waver should be applicable to Set Top Boxes. Currently, Indian manufacturers have to pay 12.5 per cent to 14 per cent VAT as Cable and DTH operators do not provide them 'C' Form, since they are leasing out boxes. However, DTH operators do not pay any VAT when they import the boxes.
Set Top box industry provides huge potential for economic activity, employment generation and saving valuable foreign exchange and increased revenue for the government. Recently, a CEAMA delegation had a meeting with the information and broadcasting minister and apprised him about the status of the DTH industry. We are encouraged on his positive response and expecting a favourable action from government soon.
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