Domestic electronic ind to generate 2 cr jobs

New Delhi, July 17: Business Chamber Assocham today said that the domestic electronics industry could create 2.1 crore jobs, provided the demand for electronic goods is met through local production.

''Curbing excessive imports by considerably raising customs duty and suppressing high internal tax regime for the industry could allow it to grow at about 30 per cent CAGR (Compound Annual Growth Rate),'' Assocham said in a paper suggesting methods to boost the domestic electronic industry, which they submitted to the government.

The paper suggested on a boost for the industry to Rs 700,000 by 2015 from current level of about Rs 50,000 crore, in order to increase its present contribution of 1.7 per cent to national GDP to 12.1 per cent in the next 10 years.

The paper also stated that current level of dependence on imports for electronics components and subassemblies continues, and the country will be spending 119.32 billion dollar on electronics imports, while a 100 per cent of demand met by manufacturing within the country would enrich the GDP by 12.1 per cent. It would be revenue neutral to the Government and provide employment to 2.1 crore within the country.

ASSOCHAM President Anil K Agarwal said, as of now, only about half the demand of around Rs 100,000 crore in the electronics component sector is met by production undertaken locally.

The chamber urged the government to focus on building the electronics industry so that it could compete with growing economies.

''The current tax regime in the domestic electronics industry is highly unfair to it as it restricts its growth due to inadvertent tax structure which includes not only high sales tax, VAT and excise,'' added the paper.

UNI