KOCHI: The Associated Chambers of Commerce and Industry of India (Assocham) has called for reduction in import tariffs on security-related electronic products by at least 50 per cent with a view to strengthening the domestic security industry.
Import duties on most electronic security gadgets currently hover around 37 per cent and for telecom equipment and power conditioners, import duties are around 12.5 per cent, which make installation of security gadgets an expensive exercise. Assocham has stressed the need to slash import tariffs on electronics products to 18.5 per cent from over 37 per cent. D.S. Rawat, Assocham secretary-general, in a representation to the Ministries of Finance and Home Affairs, has stated that the government should not be unduly concerned about the revenue loss in terms of import duty tariffs on security products and gadgets by 50 per cent, as India and its business can no longer afford to compromise security.
The security industry has been growing at 25 per cent for the last couple of years and is projected to grow manifold in the next 4-5 years to meet its security requirements. The size of the security business in India is currently estimated at Rs.22,000 crore, which, according to Assocham, would cross Rs. 50,000 crore by the end of 2012.
About half the size of the security business, the imports of security products components and gadgets comprise nearly 30-35 per cent and one can imagine the burden on domestic security business through imports of security gadgets.
The Assocham also feels that in subsequent years, the import tariffs should fall by less than 20 per cent to enable India to help its citizen access security at affordable cost.
Source : The Hindu