The Indian Government has extended the current customs duty exemption granted to vessels engaged in laying submarine cables to September 30, 2024, from its earlier date of March 31, 2024. The Cellular Operators Association of India (COAI), representing Telecom Service Providers (TSPs) and telecom equipment vendors in India, lauded the move, emphasising the telecom sector's heavy reliance on submarine cables for high-speed data transfer globally, and stating that this extension will help ensure compliance. The Indian Space Association (ISpA) also commended the allocation of a Rs 1 Lakh crore corpus for long-term financing of technological research, which will benefit startups in the rapidly expanding space sector.
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Cellular Operators Association of India
"In a significant gain for the telecom sector just before the interim budget, the current customs duty exemption granted to vessels engaged in laying submarine cables in India - which lapses on 31st March 2024 - was extended up to 30th September 2024," said Director General of COAI, S P Kochhar.
"The Interim Budget presented by the Finance Minister today reemphasised the government’s economic policies and the commitment to sustained growth, improving productivity and creating opportunities with a focus on skilling and reskilling," Kochhar added.
He further said the announcement of a corpus of Rs 1 lakh crore for the technology sector is a positive measure as access to capital is a critical factor to support innovation and growth. "The long-term, interest-free or low-interest rate loans and focus on deep tech will further encourage the private sector to scale up research and innovation."
"We are hopeful that in the post-election full budget, the industry's suggestions to reduce regulatory levies like License Fee, deferring USOF contribution till the existing funds are exhausted, exemption of Basic Customs Duty (BCD) on Telecom equipment, waiving of GST on regulatory payments and refund of ITC, among others, will be considered and addressed by the Government during the course of the year," he concluded.
Also Read: COAI Advocates for Tax Reforms and Duty Exemptions in Telecom Budget 2024-25 Proposal
Indian Space Association Comments
In response to the Interim Budget 2024, AK Bhatt, Director General of the Indian Space Association (ISpA), said, "We commend the government's allocation of the Rs 1 lakh crore corpus in the interim budget 2024 for long-term financing of technological research. This move will be beneficial for startups in the rapidly expanding space sector, providing them with support to innovate and conduct further research across various domains of space technology."
"Additionally, the new scheme being launched for boosting deep tech for the defence sector will be transformative. This initiative holds significant promise for DefSpace startups, which can play a substantial role in enhancing the ecosystem due to the integral relationship between space and defence industries."
"However, we are sanguine that the post-election full budget will include support for a liberal FDI policy for space, inclusion of space grade components in PLI, reduction of GST for satellites, launch vehicles and ground equipment manufacturing and provide tax holidays and lower import duty for space sector firms," Bhatt added.
Both the Telecom and Space Sectors expressed positivity regarding the post-election full budget's anticipated support for their respective industries.
