Boosting Innovation: ESC Advocates Major Tax Cuts and Extended Support for R&D

The Electronics and Computer Software Export Promotion Council (ESC) seeks enhanced incentives for R&D within India's electronics sector. Proposals include tax reductions, an extension of the Design Linked Incentive (DLI) scheme, a 10-year tax holiday, and increased funding. These measures are aimed at fostering innovation, reducing import dependence, and boosting India's competitiveness.

The Electronics and Computer Software Export Promotion Council (ESC) is advocating for significant changes to the Design Linked Incentive (DLI) scheme and tax policies to support the electronics sector. ESC argues these measures will stimulate research and development (R&D) and innovation among Indian corporates.

In a recent meeting with Finance Minister Nirmala Sitharaman and top finance officials, ESC proposed substantial tax incentives. They recommend additional income tax reductions for corporations investing more than 3% of their turnover in R&D and filing patents in India, aligning with national innovation goals.

ESC has also called for an extension of the DLI scheme until 2035, emphasizing its necessity due to the lengthy development cycles in electronics and semiconductor design. Additionally, ESC seeks a substantial funding increase and a 10-year tax holiday on sales of IP-driven products, encouraging investment in indigenous technology.

(With inputs from agencies.)