Union Budget: All Electronic Products Cost To Rise Up

Hyderabad: Electronic products will see their prices go up a bit. This is because government on Monday has proposed to impose import duty on components of mobile phones and chargers in a bid enhance local value addition.

Finance Minister Nirmala Sitharaman said in the Budget, “For greater domestic value addition, we are withdrawing a few exemptions on part of chargers and sub-parts of mobiles. Further, some parts of mobile rate will move from nil rate to moderate 2.5 per cent.”

The government has proposed 2.5 per cent customs duty on printed circuit board assembly (PCBA), commonly known as motherboard, camera module, connectors, parts and sub-parts to manufacture lithium ion battery and battery pack with effect from April 1.

The import duty on PCBA for making any charger is proposed to be raised to 15 per cent from 10 per cent imposed earlier with effect from February 2.

The finance minister announced withdrawal of duty exemption on components used for mobile chargers and imposed 10 per cent duty on them with effect from February 2.

Raminder Singh Soni, Managing Director of Radiant Appliances and Electronics, which is into contract manufacturing of TV for many big brands, said there will be an increase in prices in the short term.

“Localisation of the components is increasing by the day. A bulk of these sub-components have already local suppliers and they will start supplying days to come. Many components barring the screens are being made in India,” he said adding that the electronics is being given a good push. The local demand also supports domestic production.

“We feel that automobile, medical and industrial electronics should also get the same push as the mobile segment. This will aid in the companies upgrading their infra and create more employment,” he said.

Now you can get latest stories from Indtoday on Telegram everyday. Click the link to subscribe.  Click to follow Indtoday Facebook page and Twitter and on Instagram