New Delhi: In the budget to be presented on February 1, the government can take some such steps, which will reduce the prices of mobiles and gadgets. Officials related to the matter said that the government is planning to cut customs duties on components and some parts of consumer electronics and mobile phones.
The objective of the government is to promote local manufacturing and increase the export of consumer electronics-related products. Customs procedures will also be simplified to reduce the compliance burden on importers. In the budget, customs duty can also be reduced on components of audio devices and wearables like smartwatches, smart bands. This will help domestic companies to increase production. The electronic industry had also requested for reduction of customs duty on it.
Export of electronic products can be doubled
Communications and Information Technology Minister Ashwini Vaishnav had said recently that India is rapidly emerging in the field of electronics components. Mobile phones are growing rapidly in production and export. It is estimated that exports of electronics components will reach $8 billion by 2025-26, which was almost nothing in 2020-21. Not only this, the export of electronic products can also double to reach $ 17.3 billion in the same period.
India to become manufacturing powerhouse by 2026
According to the IT Minister, we can grow rapidly in the field of manufacturing battery packs, chargers, USB cables, connectors, inductive coils, magnetics, and flexible PCBA (Printed Circuit Board Assembly) through our existing capacity. In this way, by 2026, India can become the world’s powerhouse by manufacturing electronics worth $ 300 billion. Right now our production capacity is around $75 billion.
Component manufacturing potential of $25 billion
Under the Production Linked Incentive (PLI) scheme, India can make components worth $ 25 billion annually, which is 12 percent of the components used worldwide. For this, the customs duty can be reduced from the current 20 percent to 5 percent for the financial year 2023-24, 10 percent for 2024-25, 15 percent for 2025-26. On other components also 5 percent for 2024-25 and 10 percent for 2025-26 can be done.
