Industrial Promotion Activities

Department of Electronics and Information Technology (DeitY) through numerous industry promotion programs continues to give a fillip to the IT and Electronics Hardware sector. Some of the major promotional activities in the field of Information Technology and Electronics Hardware Manufacturing include the following. Creating the right infrastructure in the country that is conducive to growth, broaden the markets and create a level playing field. Provide R&D expertise and training programmes, assist in building a better business management capacity and strengthening competitiveness of organizations. Providing latest information on industry trends, management models, market and advanced technologies. A few broad initiatives are discussed here.

Infrastructure Support

Inadequate infrastructure has been identified as one of the constraining factors being faced by the Electronics Hardware manufacturing sector. In order to address the same, the Department has notified the Policy Resolution for setting up of Information Technology Investment Regions (ITIRs)* in the Gazette of India dated 28.5.2008. These regions would be endowed with excellent infrastructure and would reap the benefits of co-siting, networking and greater efficiency through use of common infrastructure and support services.

R&D Promotion

Major highlights include promoting Startups focussed on technology and innovation, a weighted deduction of 150% of expenditure incurred on in-house R&D is also available under the Income Tax Ac. In addition to the existing scheme for funding R&D projects, the department has put in place the 2 key schemes.
Support International Patent Protection in Electronics & IT (SIP-EIT),
Multiplier Grants Scheme (MGS),

Tax Incentives

Over the years, the Government has been taking steps to bring down the total taxation level on electronics Hardware. The general rate of excise duty (CENVAT) has been reduced to 8% and Central Sales Tax (CST) has been reduced from 3% to 2%. VAT on IT products is @4%.

Prioritising Electronics Hardware Manufacturing

Electronics and IT Hardware manufacturing has been identified as a thrust sector for Special Focus Initiatives in the Foreign Trade Policy, as a result of which:

  • Expeditious clearance of approvals required from DGFT shall be ensured
  • Exporters/Associations would be entitled to utilize Market Access Initiative (MAI) & Market Development Assistance (MDA) Schemes of the Department of Commerce for promoting Electronics and IT Hardware Manufacturing Industry exports

The details are available at the website of the Department of Commerce, Ministry of Commerce & Industry (http://commerce.nic.in).

Task Force to Stimulate Growth

A Task Force was set up by the Department of Electronics and Information Technology vide Office Order dated 11th August, 2009 to make recommendations on the following issues:

  • Strategies to augment the growth of the IT software and IT enabled services sector in the context of global developments.
  • Steps needed to accelerate domestic demand for (i) Electronics Hardware products and (ii) IT & IT enabled services.

Task Force Report[PDF]4.84 MB

Study on Semiconductor Design, Embedded Software and Services Industry[PDF]17.49 MB