Import, Export, Trade for MSMEs: Electronic components industry body ELCINA, hailing the government’s decision to remove import duty from the camera lens and its components, said that it should be extended to all other electronic product segments as well, especially those that use camera modules, reported PTI.
The Union Finance Minister Nirmala Sitharaman in her budget speech on Wednesday announced relief in customs duty on the import of certain parts and inputs like a camera lens and continued the concessional duty on lithium-ion cells for batteries for another one year in order to deepen domestic value addition in manufacturing of mobile phones.
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Rajoo Goel, Secretary General, ELCINA said, “Decision to remove import duty on the camera lens and its components will help mobile phone companies and electronic manufacturing services (EMS) companies shortlisted under the PLI scheme. Government should extend the benefit of importing camera lenses at nil customs duty to other product segments as well. It will help improve product quality as well as lowering the cost of products like CCTVs, laptops etc.”
The extending benefit of the camera lens at nil import duty to other segments will be in line with the government vision to boost overall electronics production as well as export from India, he added.
“Overall, the budget gives a huge push for demand for technology products with capital expenditure of Rs 10 lakh crore, which includes major investments in the infrastructure sector. Now, technology has become centric in the development of all sectors. Therefore, demand for electronic products will also see a huge boost during the year,” Goel said.
Besides, Sitharaman also announced a reduction of customs duty on parts of open cells of TV panels to 2.5 per cent from five per cent earlier.
“Continuing the import duty cuts on Camera Lens and batteries for mobile manufacturing is a welcome step and this will continue to fuel the remarkable growth India has witnessed in domestic manufacturing,” Electronics Manufacturing Services (EMS) player, Optiemus Electronics, Managing Director, A Gururaj said.
Another EMS player, Dixon Technologies India’s Vice Chairman Atul Lall said that the reduction of import duty on open cells of TV panels will push their local manufacturing. “This will promote domestic manufacturing of open cells and also reduce their cost marginally. This encourages the deepening of manufacturing in India. At present, they are getting imported,” he added.
Highlighting the role of research and development, Amrit Manwani, Chairman and Managing Director, Sahasra Semiconductors said that the electronic sector will gain from the promotion of research and development in the budget.
“All this will create demand for electronics hardware and create jobs as well in the electronics industry. The Finance Minister has laid a lot of emphasis on skill development for green energy products, drones, robotics, and IoT. All these are positive developments for the electronics sector,” he added.
The addition of 50 tourist destinations as a whole package and efforts to create physical as well as virtual connectivity is a significant step that will unlock growth and job opportunities in the sector, said Rajiv Bhalli, Managing Director of visual technology firm Barco. He further mentioned that setting up AI-based solutions in health, education, and sustainable cities will give an additional push towards the extensive use of technology.
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With the government’s push to set up 30 Skill India international centres,100 premier labs for developing applications to use 5G services, and centres of excellence for AI, India will be able to deliver talent across domestic markets as well as the international markets, said Telecom Sector Skill Council Chief Executive Officer Arvind Bali.
Matthew Foxton, Regional President for India of French-based technology company, IDEMIA said that the adoption of a unified KYC process, utilising Digilocker and Aadhar as the primary means of identity verification, is a positive step forward. It will increase financial accessibility for marginalised communities, he said.