BUILD A MANUFACTURING ECO-SYSTEM: "THE MAKE IN INDIA" SLOGAN A SUCCESS

The need for Hybrid Cloud

Businesses are demanding more than ever from IT. They want choice in devices, rapid creation and deployment of new services, and flexibility as to where applications live, how they are managed and by whom. Against this backdrop, they want to do more with less, lower their costs and have the ability to scale instantaneously. To meet these expectations IT organizations must deliver IT as a Service (ITaaS) via a well-run Hybrid Cloud that brings together the performance, security, and control of private cloud with the flexibility and cost advantages of public cloud.

IT to be a broker of trusted cloud services while maintaining the freedom to choose the Management and Orchestration technology upon which the hybrid cloud is standardized. The result is a hybrid cloud solution capable of supporting traditional and next-gen applications, financial transparency so IT can prove its value to the business, and a seamless and secure management experience.

 “India manufacturing is not cost competitive to global manufacturing benchmarks. There is an 8 per cent landing cost disadvantage of serving India from India compared to import. In addition, there are costs of switching manufacturing from existing locations to India,” said an industry executive.

Seeks tax waiver

For example, the company has asked for a waiver of tax on royalty payments. When a global technology vendor transfers technology to a domestic entity, currently there is an incidence of 5 per cent R&D cess on royalty, 12.3 per cent service tax on royalty and 10 per cent royalty withholding tax.

Proposed changes

To make ‘the Make in India’ slogan a success, the Ministry of Information Technology has proposed changes in the two-year-old special incentive package scheme.

The revisions include lowering the eligibility threshold and extending the benefit to new product categories such as air conditioners and refrigerators. The changes have been proposed with the objective of widening the scope of the scheme and removing procedural bottlenecks.

The industry had earlier told the Government that more needs to be done to achieve the target of zero net imports of electronic goods.

Domestic demand

However, the domestic demand of electronic goods is projected to grow to USD400 billion by 2020, of which domestic production can cater to only USD100 billion.

The minimum investment required to be eligible for the incentive has been brought down to help smaller players take advantage of it.

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