Power bank segment can grow around nine-fold to become a Rs 18,000 crore industry by 2025 and create 80,000 jobs if right policies are implemented, the India Cellular and Electronics Association (ICEA) said Thursday. The ICEA has proposed to bring power banks under phased manufacturing plan scheme, which if accepted, will lead to imposition on customs duty on imported power banks. “Given the right policy prescription, by 2025 the Power Banks can be built into Rs 18,000 crore industry, generate 80,000 jobs in India and exports can touch Rs 5,800 crore,” ICEA Chairman Pankaj Mohindroo told PTI.
According to the mobile phone and component industry body, India consumes about 33 million power banks a year worth about Rs 2,000 crore. “Currently, most of the power banks are imported and can be easily substituted by power banks made in India,” Mohindroo said. He appreciated government’s recent clarification to bring power banks under 18 per cent Goods and Services Tax category which the authorities were earlier insisting to classify them under 28 per cent slab.
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“It has been ICEA’s technical interpretation that Lithium-ion power bank merits classification under Lithium-ion accumulator and GST at the rate of 18 per cent is applicable, although it was attempted to misclassify Power banks under 28 per cent GST rate. At least now the path for the future is clear and this will allow the industry to function smoothly,” Mohindroo said.