IT ministry for duty review on electronic items

NEW DELHI: The IT ministry has sought changes in the duty structure for import of components so as to promote domestic manufacturing of electronic products, communications and IT minister Kapil Sibal said on Tuesday. "It is cheaper to import the components with zero duty and sell the product rather than manufacturing here. So we need something to be done in the finance ministry on the duty structure to make it less attractive for people to import, and develop the manufacturing industry here," Sibal told reporters here. As per international agreements, there are no duties imposed on most of the IT and telecom products. Electronic products makers, however, are required to pay duties on importing components, making manufacturing an unviable proposition in the country. The electronic products makers have been seeking a level playing field vis-a-vis their overseas counterparts. Sibal said if domestic manufacturing is not encouraged, the import bill for electronic products will reach $320 billion by 2020, which will be even higher than the import of crude oil. "I am sure finance ministry will give encouragement to Indian industry. In the ultimate analysis, it is a question of job creation, unless we create jobs in India, how the young are going to be empowered,"   TOI