”To give a push to its Atmanirbhar Bharat policy, the centre unveiled a revised customs duty structure that will effectively increase the duties on a wide range of items. Some revisions are aimed at boosting the government’s localization of the production plan. Others have been introduced to protect local producers and manufacturers against the cheaper imports from countries like China. In the electronics sector, for example, steeper import duty rates are a precursor to upcoming schemes under the production-linked incentive (PLI) plan. These hikes are part of the broader plan to push local production of electronics components which may lead to the price rise. The move for the steep rise in the component prices will further increase pressure on the manufacturers. The mobile and electronics sector should have been spared from the general removal of exemptions where there was zero percent import duty. The hikes are also not in line with the consultation held with the industry and recommendations of the subject ministry and experts”.
Mr. Pankaj Yadav, Founder – Truetech Services