Provide tax breaks to boost design sector growth: Report

The government should provide tax incentives to companies, set up design hubs and create a fund with a view to promote design sector in the country, a CII report said today.
Suggesting ways to encourage design culture, the 'Indian Design Report 2015, said the government should "establish design hubs responsible for building design capacity, knowledge and innovation; provide tax incentives in the form of a tax deduction to companies on their design expenditure".
It also recommended to give preference to products with the Indian Design Mark in their procurement policies; set up a design grant programme to assist mid-size companies operating in the manufacturing sector and create a fund for promoting design by showcasing them in national and global trade fairs.

The government should also establish a design-led manufacturing accelerator to provide seed funding, investments and mentorship for design ideas, it added.
Reiterating the importance of developing design capability in today's scenario, CII Director General Chandrajit Banerjee said that in today's global economy, competitive advantage belongs to those who innovate.
"Design is extremely important for the future of our nation. Design contributes significantly to and economy. This needs to be recognised further more. Design has to be embraced in all sectors of the public and corporate domain," it said.

Although the government has taken several measures, yet the sector is extremely fragmented, composed of hundreds of small enterprises.

"Scalability is vital for greater visibility and impact. Key challenges to growth include limited awareness of the value of design amongst Indian industry, concerns about intellectual property infringement and inadequate quality of design education," it added.
India has five key design hubs - Delhi and the National Capital Region, Mumbai, Bangalore, Pune and Ahmedabad and these cities are home to a large number of design businesses.