The Union government may tweak duty on electronics and phone parts in the upcoming Union Budget 2022 to be tabled in the Parliament on February 01. According to the sources, customs duties on components or sub-parts of consumer electronics items are likely to be revised. Reportedly, these steps are likely to be taken in view of encouraging local manufacturing and increasing local sourcing of components.
Two people familiar with the development said, “The steps would make local production easier and lower the compliance burden,” according to a report published by the LiveMint.
The report further suggests that the Union government is also considering reducing import duties on components of audio devices and wearables.
In order to boost local manufacturing, the consumer electronics sector is likely to be one of the new sectors where the government expects exports to pick up.
Earlier, Communications and information technology minister Ashwini Vaishnaw released a vision document which revealed exports in the electronics components segment are expected to rise to $8 billion in FY26 from a negligible amount in FY21, while electronics components exports are expected to nearly double to $17.3 billion from $9 billion in the same period.
In its five-year roadmap, the Ministry of Electronics and Information Technology’s Vision Document — Increasing India’s Electronics Exports and Share in GVCs — added that India will become a $300 billion electronics manufacturing powerhouse by 2026, from the current $75 billion.
Sources close to development based on anonymity said that the Union government is considering reducing import duties on smartwatches and smart bands to boost local manufacturing.Times Now News