
In its note to DEITY, DIPP and DOT, BIF has submitted that lowering of duty on populated PCBs will be a big dampener for PM Modi’s vision of ‘Design in India’, as PCB provides the most opportunity for design and R&D. The note highlighted that no entity will design and invest in R&D in India if the PCB continues to be imported from China at 0% (zero) duty in fully-manufactured form. Though the increase in duty on imported handsets by 12.5% has increased manufacturing intensity of mobile phones in India from 5 million/year to 100 million/year, the local value addition is hardly 1 to 2%. Therefore, increasing duty on populated PCBs is the next logical step.
TV Ramachandran, President – Broadband India Forum remarked, “While the industry was hoping the Government moved ahead with its 2015 initiative, this recent announcement has pushed the country back to the days of phone assembly, instead of progressing to a phased-manufacturing regime. This notification goes against the letter and spirit of the stated intent of the Government, which is to gradually reduce the electronic imports and achieve ‘Net Zero Imports’ by 2020 under ‘Make in India’, as part of the Digital India action plan. Therefore, we request the Government to withdraw this notification immediately.”
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