Delhi: TEMA welcomes the decision for additional duty of 2.5% on mobiles and parts of mobiles as part of such carefully conceived Phased Manufacturing Plans. As the government has announced PLI for mobiles and domestic manufacturing picking up, this decision will help in 'Make in India' by promoting domestic components.
As per the government, it has assigned Rs 41000 crores scheme on production link incentive on mobile phones, and thereby mobile manufacturing has picked up very fast. So, this imposition of 2.5% duty on some of the components will not affect customers in a big way.
Prof NK Goyal, Chairman Emeritus, TEMA(Telecom Equipment Mfg. Association), India explains that as per some industry views, it may affect hardly 0.1 to 0.3% of the total bill of the materials used for manufacturing of the phones. On the other side, it will encourage the domestic procurements of mobile phone components. It is worth mentioning that the Tamil Nadu government recently approved various mobile manufacturing components.