Union Budget 2015: Expectations of Indian Electronic Industry

With the Union Budget announced on 28^th Feb, expectations were high among the leading electronic security organisations with anticipation for key announcements.

The process of Urban Infrastructure development in the country has already been escalated with continuous procurement of smart components (Intelligent Transport Management System, Surveillance Cameras, etc) which is a positive sign for all the sectors.

Building of Smart cities creates a unique opportunity for companies in the (ESDM) Electronic System Design & Manufacturing sector.

ESDM is a meta-sector, which underlies technological/IT applications in practically all sectors of economy, whether education, health, agriculture, defense, atomic energy, space etc.

The absence of an Electronics Commission has been deeply affecting the ESDM players and the ecosystem.

“ There is an immediate need of setting up and Electronic Regulatory Commission (with industry representative) similar to the Telecom Regulatory Commission in India which will act as a One Stop Shop for implementation of policies, regulations, approvals, resolving issues, etc for the electronics companies in India,” says  Ashok Chandak, chairman, India Electronics & Semiconductor Association.

“It will also provide a fair and transparent policy environment which promotes a level playing field and facilitates fair competition. The Commission thus should make all efforts to encourage the growth of the ESDM sector in the country and will ensure that the country will play an important role in the emerging world information society,” added Chandak.

Tax Relief and Infrastructure development

Yogesh B. Dutta, COO, Aditya Infotech Ltd, India’s leading distributer of security and surveillance solution says,” we expect the Government to continue with the momentum and thrust on infrastructure and manufacturing since we believe that CCTV growth and infrastructure development go hand in hand. We, therefore, are confident of a significant boost from security Industry perspective.”

He also commented that, “we expect the government to pull down import tariffs to a more feasible level, which will enable easy access to security products at an affordable cost. “

“The upcoming budget is likely to look into the tax burden being faced by companies as well as individuals. The tax relief for companies is required to boost confidence in them to invest back in the country while respite for an individual will encourage savings,” says Nikhil Pathak, VP & country general manager, India & SAARC – IT Business – Schneider Electric India.

Pathak further added that, “there is also a necessity to look at establishing a predictable and easy tax structure, as it will help in the construction of infrastructure for large data centres in India and also to encourage large software products companies grow within the country”

“We also expect reduction in taxation for IT players, who will be the key in realizing this network infrastructure. The government is taking up the ‘Make in India’ initiative in a big way,” says Anil Valluri, president, NetApp India & SAARC.

Anil also added that, “while this is a great initiative, the budget needs to address the issues of simplifying the tax regulations, improve ease of doing business and accelerate the speed of big ticket reforms on the anvil.”

“Infrastructure projects have been stuck for various clearances and effective consent of these projects should be made a priority as this would give a heads up to providing an effective framework for building smart cities, says Prasenjeet Bhattacharyya, business head, Security and Mobility, Panasonic India.

He further added that, “a single window clearance system must be introduced. Due to difficulties of government channels, many projects get ceased and delivery is delayed. A quick completion of stalled projects is very important and will lead to a faster and more transparent execution.”

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