Calcutta, July 12: To end the insecurity prevailing in the domestic hardware industry after the finance minister exempted duty on finished goods, the Council of Electronics and Hardware Industries Association (Ceha) has requested the government to provide a level-playing field to ensure viability for its members.

The council, comprising representatives from Mait, Tema, Cetma and Elcina, today met in the capital to discuss the tax structure and suggested changes to protect domestic manufacturers and traders.

“We have proposed that if the government allows imports of finished goods at zero duty, then accessories and components should also attract the same rate,” Tema president . K. Goyal said.

According to a gazette issued in July 1998, the government had outlined that it would bring down duty on capital goods to zero two years before the implementation of WTO norms and reduce import duty to nil one year before the deadline.

“On one hand, the government says the manufacturing industry and employment generation are its priorities, while on the other, it puts the very survival of an industry at stake,” said a member of the council.

The hardware sector has the potential to provide employment to 6.8 million people in the next three years. A survey by Ernst & Young puts India’s hardware requirements in 2010 at $78 billion, of which $54 billion can be sourced from the domestic market.

While the domestic telecom manufacturing industry employs 2 lakh people, the hardware industry provides job opportunities, directly and indirectly, to around 30 lakh. In the eastern region alone, 20,000 people are likely to be affected.

The proposal, sent to the ministries of finance, commerce and communications, also provides an alternative to the government.

“In case the duty structure cannot be altered, the government should allow telecom and hardware units to be treated as special economic zones (SEZ), which will allow them to avail of duty-free imports,” said Goyal.