New Delhi [India], January 31 : The India Cellular and Electronics Association (ICEA) welcomed the duty cut on various mobile parts by the central government and stated that low input tariffs were key to transforming India into a global hub for electronics manufacturing and exports.
"This is a critical and welcome policy intervention by the Government towards making mobile manufacturing competitive in India. Building scale, riding on low input tariffs is key to transforming India into a global hub for Electronics Manufacturing and Exports," said Pankaj Mohindroo, Chairman, ICEA.
The central government has slashed import duty on several key components used in the production of mobile phones in a bid to boost the country's electronics exports.
This move announced by the Finance Ministry in a notification late Tuesday, is expected to positively impact the mobile phone sector, encouraging growth and improving competitiveness on a global scale.
"Electronics has improved from the 9th position few years ago to India's 5th largest export in 2024. Mobiles constitute over 52 per cent of electronics exports thanks to the PLI Scheme. This is the first industry to leapfrog out of import substitution to export-led growth within the last 8 years. Government has been an excellent and willing partner in this transformation," added Pankaj Mohindroo.
The import duty has been reduced from 15 per cent to 10 per cent for screw, SIM socket, or other mechanical items of metal for cellular mobile phone; battery cover, front cover, middle cover, main lens, back cover, GSM antenna/antenna of any technology, PU case/sealing gasket - other articles of polyurethane foam like sealing gaskets/case, sealing gaskets/ cases from PE, PP, EPS, PC and all other individual polymers or combination/combinations of polymers, and other mechanical items of plastic.
The other items that are set to attract a lower import duty are conductive cloth, LCD conductive foam, LCD foam, BT foam, heat dissipation sticker battery cover, sticker-Battery slot, protective film for main lens, mylar for LCD FPC, film-front flash, and side key for use in manufacture of cellular mobile phones.
"Rationalization of customs duties brings much-needed certainty and clarity for the industry. I thank Hon'ble PM @narendramodi Ji and FM @nsitharaman Ji for strengthening the mobile phone manufacturing ecosystem through this measure," Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, said in a X post.
As part of its Atmanirbhar and Make in India plan, the government launched production incentive (PLI) schemes in varied sectors, including electronics, to make Indian manufacturers globally competitive, attract investments, enhance exports, integrate India into the global supply chain and reduce dependency on imports.
The telecom industry in India has become investment-oriented and an employment generator and exports of mobile are estimated to have exceed USD 10 billion in the financial year 2022-23.
Electronics is one of the fastest-developing industries globally. Electronic products have significantly impacted and shaped the lifestyle of the people of India in the digital world. The digital push stimulated by the Covid-19 pandemic is expected to fuel the demand for electronic devices worldwide.
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