From April 1 onwards, the government is likely to enforce basic customs duty on electronic components such as populated PCBs, camera modules and connectors.
Panasonic, Lava, and HMD global are now eying to escalate the level of local manufacturing in India and to meet the same, the companies are likely to finalize their fiscal plans, including investments. The news surfaced after the government’s decision of augmenting duty on imported printed circuit board (PCB) assembly in the upcoming financial year.
The bigwigs of Lava, Panasonic, and HMD Global stated that there is a possibility the new phased manufacturing programme (PMP) could create India a huge manufacturing center within few years because PMP predicts the escalating rate of local manufacturing by detailing the names of the components on which import duties will be charged upon.
In an exclusive interview with ET Telecom, Ajey Mehta, head of India at HMD Global said, “We are working with our partners to manufacture more and more components (in India). SMT is definitely on the cards for us.”
From April 1 onwards, the government is likely to enforce basic customs duty on electronic components such as populated PCBs, camera modules and connectors. In the last budget, a heavy duty of 20% was already levied on smartphone from 15%.
Hari Om Rai, chairman, Lava International, said “We have a complete plan for 10 years so that design and component manufacturing can happen in India.”
According to Ajay Mehta of HMD, approximately, 40-50% cost of a phone is dependent upon the PCB gate-up and therefore, a sudden duty fee on the components might increase the [rice, but also it would boost local manufacturing at a higher scale.
Sameer Batra, CEO, Wynk, Bharti Airtel, “We have a combination of subscription and ads for monetization, but it’s very early days, some new models will also emerge.”