Union finance minister, Arun Jaitley on Wednesday in Union Budget 2017-18 proposed to impose Special Additional Duty (SAD) of 2% on Printed Circuit Boards, which are used in the manufacturing of the mobile phones.
According to Manish Sharma, President and CEO, Panasonic India and South Asia, the budget allocated towards MSIP’s and EPF looks reform-minded and will surely reduce dependency on imports in the industry. He said “Also, the government’s move on imposing a 2 percent special additional duty on populated printed circuit boards (PCB) used for mobile phones imported into the country will provide adequate protection to the domestic industry and give the necessary drift to ‘Make in India’ under the GST regime.”
Arvind R Vohra, country CEO and MD, Gionee India says, “we are positive that the government has increased allocation and incentives in schemes like M-SIPS and EDF that will provide necessary push to the mobile and internet manufacturing economy.”
While presenting the union budget, Arun Jailtey said “a number of global leaders and mobile manufacturers have set up production facilities in India. I have, therefore, exponentially increased the allocation for incentive schemes like M-SIPS and EDF to RS. 745 Crore in 2017-18. This is an all time high.” He added “we are also creating an eco-system to make India a global hub for electronics manufacturing, over 250 investment proposals for electronics manufacturing have been received in the last two years, totalling an investment of Rs. 1.26 lakh crore.”
With the increase in the cost, Anshul Gupta, Research Director Gartner said, “of course, the cost of manufacturing mobiles will go up for companies in India. Now whether they pass this onto consumers or not, will depend on vendor-to-vendor.”