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Government imposes 10% duty on PCBs for Smartphones

Government recently announced to impose 10% custom duty on PCBs for smartphones. In India considering to new duties on import of a key smartphone electronic components looks as an initiative to promote the domestic manufacturing in India, the fastest growing marketplace in the world.

The Indian government’s Ministry of Electronics and Information Technology (MeitY) has suggested a proposal to enforce a 10 percent duty on imports of assembled printed circuit boards (PCBA), according to Reuters reports, naming two unidentified government officials.

10 % Increased duty on imports will applicable on mounted printed circuit boards (PCBs), camera components and connectors, this move will impact on the cost of importing components, bootup tonic for encouraging the domestic manufacturing of electronics components and assemblies.it was calculated the 50% cost of smartphone production inherent its PCB assembly.

Through the “Make in India” program Prime Minister Narendra Modi has encouraging the companies to start the localization of electronic manufacturing in the country. Because of Higher duties, the leading smartphone manufacturer like Samsung, Xiaomi, OPPO, Apple already invested to start or enhance their local manufacturing capabilities.

In the Month of February 2018 Modi Government decided to impose 10% import duty on a PCB of Mobile Phone charger, 15% on TV LCD panels, on lithium-ion batteries increased duty by 10% to 20%, and by 5% to 15% on mobile Phone chargers, keypad, battery packs, adapters, wired headsets, receivers, antenna, etc. this move to increase in custom duty worked as a catalyst to increase in local manufacturing and pulsing to the global players for new investments in India.

Chinese leading smartphone maker OPPO is also setting up surface mounting technology machines in a new unit in its existing building Noida location, recently remain competing with Xaiomi. Here OPPO will start in-house assembly of printed circuit boards on the wide level.

Last month Chinese leading smart manufacture announced to start their first printed circuit board assembly line in India.

Japanese leading Electronics company Sony also start local production of printed circuit board assemblies in India. In the year 2004 decided to stop their local manufacturing activities seeking more profit by importing assembled components from their china and Malaysian manufacturing units. But now the scenario is totally changed, and Sony India focusing to maximize the local part production and optimize the import. Despite the implantation of GST Sony India aiming to 20 % development in operation during FY 2018-2019. Also looking for 25% growth in term of sales.

Indian smartphone market is very huge according to a recently published report 134 million smartphones were purchased in India in India year 2017, in the simple term we can say that India markets still having the very high potential and after China, it is the biggest market in the world.

To cater to the manufacturing demand of leading mobile production companies, the world leading electronic contact manufacture Foxconn increased the production capacity up double in Chennai location. For this expansion, local government also playing the vital role and giving various subsidies to Foxconn. According to Foxconn officials they are targeting to make India a manufacturing hub to export assembled components all over the world.

Modi Government trying to make the hub for electronic manufacturing under the championed Make in India campaign. It will help to attract the global players and creating new jobs.

According to the ICA forecast, it was assumed to have approx. 55% growth in the volume of the smartphone through domestic production in the year 2018 it will have supposed to be the increase of 85% localized smartphones compared to last year.

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