Bharati Airtel, India’s leading mobile player and telecom equipment manufacturer has sought duty reduction and financial incentives for promoting manufacturing of telecom equipment in India.
The telecom manufacturer has said “Indian manufacturers are hit by high taxes and duties on import and export of telecom equipment”, in a response to the pre-consultation paper by TRAI, the telecom regulator.
Bharati added that there should be no excise duty on telecom equipments and the GST rates for the telecom equipments should be waived off. In the present day scenario, the equipments excluding mobile handsets attracts a 10 per cent excise duty
It has been demanded that the government reimburse the R&D costs to Indian telecom firms. The state run ITI has also said that the government should also provide funds for native telecom R&D by ITI and CDOT for improvement of facilities.
Recently TRAI came up with a re consultation paper after the Chinese telecom equipment controversy asking how to increase the growth the telecom equipment manufacturing in India locally.
The demand for the telecom equipments has increased to over trillion rupees due to the growth in the wireless services market. However the growth related to equipment manufacturing in India has not been proportionate to this growth in the wireless services market.
A home-grown telecom equipment manufacturer, Vihaan Networks has stated that special incentives and tax concessions would help in promoting telecom products. An income tax holiday should be granted for these for 10 years and excise duties for manufacturing in India should be reimbursed.
Equipment manufacturers have also suggested that the government should encourage the research and development and offer soft loans and grants for these purposes.
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