Implement panel proposals: MAIT

ENS ECONOMIC BUREAU

MUMBAI, FEB 23: The Manufacturers Association of Information Technology (MAIT) on Tuesday said the hardware industry would slump if the recommendations contained in the second part of the IT Task Force report were not implemented in the current budget. Addressing a press conference in connection with the IT Asia exhibition in 2000, MAIT director Vinnie Mehta said the hardware body had asked the government to treat the report as its recommendations for the budget. MAIT president Ram N Agrawal said India had lost out an investment of $400 mn from Hewlett Packard to China in 1996 due to delays in getting goods in and out of the country. This was the primary issue the report sought to address, he said. "Even in SEPZ (Santacruz Export Processing Zone) 26 forms have to be filled and seven rubber stamps have to be obtained," Mehta added.

He said the government would not suffer any revenue loss from the S-bit scheme (soft-bonded units scheme) put forward in the report. On the contrary, 1 mn jobs would be created."Hardware has the unique feature of employing semi-skilled labour," Agrawal added.

The second part of the IT Task Force report deals with the hardware industry and gives a commitment to export $ 5 billion in 2005 if all recommendations are implemented. Hardware exports currently stand at around $ 300 million a year, while the IT industry is growing at the rate of 43 % in volumes and 30 % in value terms.

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