New Delhi, December 30
Mobile industry body ICEA has suggested the government to reduce import duty on mobile phones as domestic mobile makers were ready to face competition.
The industry body, whose members include Apple, Foxconn, Wistron, Lava, among others, has also sought extension of Remission of Duties or Taxes on Export Products (RoDTEP) on companies selected for production-linked incentive (PLI) scheme.
In a presentation to the Department of Revenue for the upcoming Budget, India Cellular and Electronics Association (ICEA) Chairman Pankaj Mohindroo said, “Imports are no longer a threat and duty reduction of 20 per cent can be brought down since large scale manufacturing is well on the way and the industry can face competition.”
Global mobile phone majors have expanded production in India following implementation of the PLI scheme.
iPhone maker Apple’s contract manufacturers Foxconn, Hon Hai, Wistron and Pegatron, apart from Samsung, Rising Star along with domestic companies Lava, Bhagwati (Micromax), Padget Electronics (Dixon Technologies), Optiemus, among others, have proposed cumulative investment of Rs 11,000 crore under the PLI scheme to manufacture mobile phones worth Rs 10.50 lakh crore over the next five years.
Mohindroo also suggested revising GST on mobile phones to 12 per cent from 18 per cent at present to curb the emerging grey market and put the devices within the reach of the common man.
He assured the Department of Revenue that the recent rise in mobile imports would be reduced to near zero by next year as production picks up following the unblocking of supply chain.
“There is great interest in India with the global supply chain moving out of China. The shift of global value chains (GVCs) from China to India led by Apple is moving smoothly,” Mohindroo said in a presentation.
Mobile phone production in the country has already crossed Rs 2 lakh crore in value terms in 2019-20. PTI