Resuming IT hardware production to save India Rs 19,000 cr import bill: MAIT

The government's decision to allow manufacturing of IT hardware products will save the country an import bill of Rs 19,000 crore, industry body Manufacturers' Association for Information Technology (MAIT) said on Wednesday.

The Ministry of Home Affairs has allowed resuming of IT hardware production, sales and service in a restricted manner during the ongoing lockdown.

"This move was the need of the hour as all digital and communication highways are built using electronic and ICT products; this was extremely essential as all utilities need these products otherwise imports would have catered to this pent up demand for ICT products estimated at USD 2.5 billion (about Rs 19,000 crore) per month," MAIT President Nitin Kunkolienker said in a statement.

The estimate includes bills for all electronics products required to support IT and telecom services, according to a representative of MAIT.

"MAIT had been urging the government to include manufacturing, sales, and servicing of ICT products, including mobile phones in essential services at a time when reliance on such products and services has increased due to the lockdown. We appreciate that the industry's voice was heard and we thank the government for inclusion of the same," Kunkolienker said.

The government has suspended production and services in all non-essential categories during the first phase of lockdown which started from March 24 onward to contain coronavirus infections.

The death toll due to coronavirus rose to 377 while the number of cases in the country climbed to 11,439.