iWorld

Broadband Forum report links incentives under GST to Digital India success

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2016/12/13/GST-800x800.jpg?itok=ZClxQFft

NEW DELHI: As online media consumption in India has shown growth over the past few years with mobile devices having taken over as the preferred medium of consuming online media, the government needs to incentivise further mobile handset manufacturing under the proposed Goods and Services Tax (GST), according to a new study.

The Broadband India Forum (BIF), in association with knowledge partner Ernst & Young (EY), in a research paper unveiled yesterday said that it becomes important to grant incentives to domestic manufacturing in order to set off the “local disabilities” in manufacturing, including the booming mobile handset manufacturing.

Wider deployment of 4G networks along with affordability and indigenisation, smartphones are going to drive mobile broadband to the next level of penetration, the BFI-EY report stated, adding that mobile handset manufacturing in India has gained fresh momentum in the past two years with a number of OEMs and third-party contract manufacturers setting up facilities in the country. The number of mobile handset manufacturing facilities reached 40 in August 2016 from just three in 2014 driven by the increase in duty differential in Union Budget 2015 to 11.5 per cent from five per cent, the report highlighted.

According to Partner EY Bipin Sapra, “(Mobile) Handset manufacturing industry has seen a tremendous growth in past few years driven by government’s ‘Make in India’ initiative and policy changes such as duty reduction on domestically manufactured handsets. It is expected that the adoption of smartphones in India will go up to 688 million by 2020 as compared to 238 million in 2015. With the introduction of GST, most of the current central and state taxes/duties will be subsumed under GST. Thus, it is expected that the incentives available to domestic manufacturers under the current regime would decrease and there is need to continue the incentives under the GST regime to meet the increasing demand through domestic production.”

The report, which notes the country has embarked on one of the world’s most ambitious broadband project with the `Digital India’ programme seeking to transform India into a digitally empowered society and knowledge economy, suggested the government may walk the extra mile to extend similar benefits to the component manufacturers that would encourage more investment in India and give a boost to the handset manufacturing eco-system.

Pointing out that once the eco-system is created, the prices of parts and components may also become more competitive that in turn will reduce the cost of mobile handsets and make Indian handset manufacturers more competitive globally, BIF president T.V. Ramachandran said, "The broadband device today is a smartphone. We need to increase smartphone penetration as India today has less than 30 per cent smartphone penetration. This can only happen through local manufacturing and by further increasing local value addition.”

The GST alone will by itself not be the driver for incentivising manufacturing in a country and some of the essential factors for a sustained manufacturing environment in the country are infrastructure, a robust manufacturing ecosystem, skilled manpower, technology, R&D facilities, etc., the report said.

The report has also come out with a formula that may be adopted to hand out incentives to domestic manufacturing under GST.

Electronics and Information Technology secretary Aruna Sundararajan, who was present during unveiling of the report, said, “This complementary study by EY-BIF, providing how incentives can be continued under GST to the domestic handset industry, will be helpful for the government to frame a better policy and boost local handset manufacturing.”

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/20/national.jpg?itok=Pprea-Q2
The National Inclusion Cup 2018 a CSR initiative of Sony Pictures Networks India

Sony Pictures Networks India (SPN) is proud to be sponsoring the 2nd edition of the National Inclusion Cup (NIC), which is the only national football tournament of its kind for underprivileged youth. The NIC is being held from 20th-23rd Mar’18 at Tiger Play, Lokhandwala, Mumbai and is organised in...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/20/cam.jpg?itok=QpxzyfZc
Applause Entertainment to make web series on 1992 Securities Scam based on the book ‘The Scam’

For the first time ever, the true story behind one of the most notorious scams of the Indian Stock Market shall be brought on screen by Applause Entertainment in a 10 part series. SuchetaDalal and DebashisBasu’s ‘The Scam’ is one of the most thrilling non-fiction books ever written in India....

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/20/sony.jpg?itok=0COCG8GN
Sony Pictures Networks India inaugurates its first music room at Bhondsi Jail, Gurugram

Staying true to its CSR commitment of Ek India Happywala, Sony Pictures Networks India (SPN) has partnered with India Vision Foundation to launch its first music training room at the Bhondsi jail in Gurugram.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/20/hari-om.jpg?itok=UHVLFHPA
Shemaroo launches Hindu devotional app 'HariOm'

Shemaroo Entertainment Limited has launched a Hindu devotional app ‘HariOm’ with a variety of features. The HariOm app is a much-needed digital alternative to connect people with their faith and engage with their community.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/19/krishna_0.jpg?itok=UkwDYmLD
Eros International acquires film rights to best-selling author Ashwin Sanghi's The Krishna Key

Eros International, a leading global company in the Indian film entertainment industry has acquired the rights to adapt best-selling Indian author Ashwin Sanghi’s anthropological thriller The Krishna Key into a theatrical film and original series for their digital over-the-top (OTT) South Asian...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/19/uday_1.jpg?itok=og-_38kf
SonyLIV adds 7 new channels from SPI

SonyLIV will be adding seven channels from SPI’s bouquet by the end of February. The distribution deal will include international movie channel Filmbox Art House, 24-hour martial arts channel Fightbox, and sports and lifestyle channel Fast&Funbox.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/16/rahat.jpg?itok=v3ZW9oAb
Rahat Fateh Ali Khan's latest 'Yeh Zindagi' available exclusively on Idea Music

Idea Music, the one-stop entertainment destination for all music lovers, from one of the leading telecom operators, Idea Cellular, has come out with a musical bonanza for all its listeners.

iWorld Telecom
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/15/susan.jpg?itok=K9ys1phH
YouTube’s premium ad-free service Red to hit 100 new countries

YouTube is all set to expand its premium subscription service YouTube Red to as many as 100 countries, according to YouTube chief executive Susan Wojcicki. The target countries haven’t yet been decided.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/15/alt.jpg?itok=EDAzilYc
Ace filmmaker Subhash Kapoor signed by ALTBalaji for its next #ALTBalajiOriginal

Since its launch in April, ALTBalaji has more than 15 million mobile downloads. The ad free, subscription-based platform is available in over 90 countries and offers original content in various Indian regional languages, making it India’s largest repository for original and exclusive digital...

iWorld Over The Top Services

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories