Handset makers want proposed duty on components rolled back
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They have argued that the tariff will hurt the plans of global value supply chains looking to shift to India and domestic device makers alike. It will also threaten investment and production targets set under the Production-linked Incentive (PLI) scheme, they said.
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Mobile handset makers have urged the government to roll back the 2.5% customs duty on some components proposed in the budget. They have argued that the tariff will hurt the plans of global value supply chains looking to shift to India and domestic device makers alike. It will also threaten investment and production targets set under the Production-linked Incentive (PLI) scheme, they said.
Union Budget 2022: ‘Wide spread feeling of disappointment’ over duty hikes on electronic components, says industry body
February 2, 2021
The import duty hikes on several electronic components crucial to manufacturing mobile phones and their accessories proposed in the Union Budget have caused a “wide spread feeling of disappointment,” the industry body India Cellular & Electronics Association wrote in a letter to the IT Ministry. In fact, in some cases such as mechanics, this could be a “big setback and can collapse the developing mechanics industry vertical,” the association said.
The ICEA is an association of electronics companies and smartphone manufacturers and counts Apple, Oppo, Foxconn, and 3M, among others, as its members.
Mobile phone, durables prices set to increase
February 02, 2021
Hike in customs duty on imported parts likely to push prices up
While the increase in customs duty on mobile phone parts and electronics goods announced in Budget will give a fillip to domestic manufacturing, it is also likely push up handset and durables prices, say manufacturers.
“For greater domestic value addition, we are withdrawing a few exemptions on parts of chargers and sub-parts of mobiles. Further, some parts of mobiles will move from ‘nil’ rate to a moderate 2.5 per cent,” Finance Minister Nirmala Sitharaman said.
Promote manufacturing
“The customs duty revision for the compressors, used in refrigeration and air conditioning, from 12.5 per ent to 15 per cent will promote indigenous manufacturing of the same and is in line with making India self-reliant in the long run. There have been increases in import duties on motors and PCBs as well. These are good for the medium and long-term but will
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