- CII and Kearney report calls for GST and import duty rationalization to boost MCE sector competitiveness
- Current GST structure has discrepancies, with components taxed higher than final equipment
- Report suggests revising customs duties and imposing anti-dumping duties on underpriced imports
- India imports $2.6 billion in MCE components annually, increasing vulnerability to supply chain issues
- A tiered tax structure like Brazil’s could encourage local assembly operations
- India’s MCE sector is growing rapidly, contributing $16 billion to the global $414 billion market
- Report outlines a 10-point action agenda to grow the sector to $45 billion by 2030
- Recommendations include green incentives for electric and hybrid MCE, and a dedicated PLI scheme
- Government initiatives like Atmanirbhar Bharat Abhiyan and Make in India support localization efforts
Source: a2ztaxcorp.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
