With the government’s push towards domestic electronics manufacturing with initiatives such as ‘Make in India’ and Atmanirbhar Bharat, we can expect a rise in custom duties on electronic products. That said, the governments keep changing but the ingredient that remains constant is the end consumer around which the economics functions. Irrespective of which political party is ruling, manufacturing things locally should be the everlasting constant. For India, the dependency on neighbourhood should fade away in a quicker pace. With changing world dynamics, India is looking at a big opportunity to be a global electronics manufacturing hub. The government’s support in the overall supply of goods or services will ensure that consumers’ demands are met and also help in curbing inflation. The rise of the sector will also create more jobs for people and leads to building of a complete ecosystem.

The government should look at restricting, abolishing or giving control to shareholders for Dividend Distribution Tax. Ecommerce platforms have contributed to the economy and hence law relating to TDS under section 194-O on ecommerce transactions should exclude specific cases from the ambit of this provision. The government can look at making stronger efforts towards maintaining TDS at 75 percent of the applicable rates for the coming fiscal year in order to boost liquidity. Further the focus of the government on expansion of digital infrastructure in non-metro cities is also expected to play an important role.

Sameer Katole, CEO, CROSSLOOP