India Set to Tap into $500-Bn Global Mobile Manufacturing Opportunity: Lava CMD on Corporate Tax Relief

NEW DELHI: Domestic handset maker Lava said that said t hat India is poised to tap the global $2 trillion electronics manufacturing and around $500 billion mobile manufacturing opportunity following the government’s move to slash corporate tax rates.

“Electronics manufacturing is a 2 Trillion-dollar opportunity, globally, of which mobile alone is one fourth. Last year, Vietnam could export 133 Billion dollars-worth of electronics and electrical goods & equipment. As it is a very large opportunity, it requires very special attention,” Hari Om Rai, chairman at Lava International, told ET.

“Hence, a very high-profile committee of the govt is looking into various disabilities and therefore the measures needed to make India the next global hub for mobile manufacturing and exports,” he added.

Lauding the latest move by the government, Rai said that there could be certain issues and clarifications needed on the part whereby govt has offered further lower tax on fresh investments.

“However, one thing is very clear that the government is very sincere about business and economy…current income tax reform is a great invitation to the global companies to come and Make in India, for the world,” he said. “We are very optimistic about the mobile industry prospects in time to come.”

To attract fresh investment in manufacturing and boost Make In India, new provision has been inserted in the I-T Act, which allows any new domestic company incorporated on or after October 1, 2019, making fresh investment in manufacturing, and starts operations before March 31, 2023, an option to pay income tax at 15 per cent, Finance Minister Nirmala Sitharaman said on Friday.

The effective rate for new companies would come to 17.01 per cent after considering surcharges and cess subject to the condition that they do not avail any other tax incentive or concession such as tax holidays enjoyed by units in special economic zones (SEZ) or accelerated depreciation.

Source: ET