New Delhi: Industry body Assocham has asked the government to reduce import tariffs on security-related electronic products by about 50% to strengthen the domestic security industry.
Currently, import duties on most electronic security gadgets is about 37% and those of telecom equipment duties is about 12.5% making installation of security gadgets an expensive exercise, the chamber said.
“There is an urgent need to slash import tariffs on electronic products to 18.5% from over 37% and zero on those of telecom equipment to strengthen security nets in the private sector and in other areas too,” it said.
The government should not be unduly concerned about the revenue loss due to cut in import tariffs on security products and gadgets, as India and its business can no longer afford to compromise on security, Assocham secretary general D.S. Rawat said.
All inputs to the components industry should attract zero custom duty so as to enable domestic components industry to compete with the imports, it added.
The chamber further said private security in India would become a Rs50,000-crore industry in three years as corporates have increased their spending on safeguards after the Mumbai terror strikes.
Demand for security gadgets has also increased in educational institutions, hospitals, shopping malls and business centres, it said.
“The size of security business in the country is estimated at Rs22,000 crore which may cross Rs50,000 crore by the end of current five year plan (2007-2012), as security all of a sudden has become top priority for Indian Inc,” the chamber said.