There will be no appreciable increase in prices, at least for the locally manufactured phones, said Pankaj Mohindroo, Founder and National President of Indian Cellular Association (ICA), the apex body of mobile industry in India.
Reacting on to the Custom duty hike of 5 percent in the Union Budget 2018, Pankaj Mohindroo said, “GOI is relentlessly pursuing curbing imports and building value addition in the country. At these levels of import duties, bringing goods from outside India is no longer a viable option. Since 81% of Mobile Handset volumes (225 mn out of 275mn) and 84.5% of Mobile Handset value (Rs. 1,32,000 crs out of Rs. 1,56,000 crs.) is already manufactured in India, there will be no appreciable increase in prices, at least for the locally manufactured phones.”
Currently, government imposes 15% duty on the imported mobiles and plans to increase it upto 20% to safeguard local manufacturers.
Because of increase in import duties in components and sub-assemblies there will be a marginal increase in cost for importers till large domestic capacities for these components/ sub-assemblies are created. The intent of the duty imposition is to encourage manufacturing in India which are already taking place for chargers/ adapters, battery packs and other component verticals on which duty is already imposed as part of the Phased Manufacturing Program (PMP) of the Government, he said.
He is also the Chairman of the Special Task Force set up by the Department of Electronics and Information Technology.
He also added that at the same time we have to be acutely conscious that we are envisioning a globally competitive mobile handset and components manufacturing industry both to serve the domestic market requirements of India and the Globe. A march towards deep competitiveness is critical.