New Delhi: Industry body Assocham on Tuesday said there is a need to create an independent ministry for electronics and hardware industry, which will lead to faster indigenisation and reduce dependence on imports.
India would need 250 million units of mobile telephones and lakhs of computers, besides laptops, amounting worth Rs20,000 crore by 2011-12, Assocham said.
“The import of input components is expected to be more than 90% and demand for local components is merely 10% due to high taxes,” the chamber said.
Currently, electronics and hardware fall under the ministry of communications and IT. Since, the ministry has huge responsibilities in putting India on communications and IT roadmap of the world, a separate ministry is required which could focus on hardware and electronics segment, it said.
It pointed out that indigenous manufacturers are willing to invest Rs60,000 crore to manufacture electronics hardware and other products in the country. But in the absence of a definite approach, India is unable to attract investment.
Assocham said electronics and hardware sector has remained neglected as it is subject to inadvertent duty structure to an extent of 30% and other local levies.
There is a need to bring down the taxes to give a boost to the industry. This would also generate over 25 million jobs in due course of time, it said.
The setting up of a separate ministry would give a face lift to the entire sector.