The government’s decision to scrap import tariffs on camera lenses and their components will benefit mobile phone makers in India and should be extended to all other electronic product segments that use camera modules, ELCINA, the electronic components industry association, said on Thursday.
To deepen domestic value-added in cellphone manufacturing, Finance Minister Nirmala Sitharaman announced in her budget speech tariff relief for importing certain parts and inputs such as camera lenses, and continued preferential tariffs on lithium-ion cells for batteries for another year.
“The decision to lift the import duty on the camera lens and its components will help the mobile phone companies and electronic manufacturing services (EMS) companies shortlisted under the PLI program. The government should extend the benefit of duty-free imports of camera lenses to other product segments as well. It will help improve product quality and reduce the cost of products such as CCTVs, laptops, etc.,” ELCINA Secretary General Rajoo Goel told PTI.
Extending the advantage of the camera lens with no import duty to other segments will be in line with the government’s vision to boost overall electronics production and exports from India, he added.
“Overall, the budget gives a huge boost to demand for technology products with capital expenditures of Rs 10 lakh crore which includes large investments in the infrastructure sector. Now technology has become a central part of the development of all sectors. Therefore, the demand for electronics products will also experience a huge boost during the year,” said Goel.
The Minister of Finance has also announced a reduction in tariffs on parts of open cell TV panels to 2.5 percent from the previous 5 percent.
“This year’s budget is a strong attempt to consolidate the Indian economy in the post-pandemic momentum, raising the personal tax exemption limit will surely boost consumption and the electronics industry will surely benefit.
“The continuation of import tariff cuts for camera lenses and batteries for mobile manufacturing is a welcome move and this will further fuel India’s remarkable growth in domestic manufacturing,” said EMS player Optiemus Electronics, Managing Director, A Gururaj.
Vice Chairman and General Manager of EMS (Electronics Manufacturing Services), Dixon Technologies India Atul Lall said lowering import tariffs on open cell TV panels will boost their local manufacturing.
“This will encourage domestic manufacture of open cells and also slightly reduce their cost. This will encourage deepening of manufacturing in India. Currently, they are imported,” he said.
Sahasra Semiconductors Chairman and CEO Amrit Manwani said that the electronics sector will benefit from the promotion of research and development in the budget.
“All of this will create demand for electronics hardware and will also create jobs in the electronics industry. The finance minister has placed great emphasis on skills development for green energy products, drones, robotics and IoT. All of these are positive developments for the electronics sector,” Manwani said.
He said the 50-year loans to the state will help states like Uttar Pradesh that are creating an electronics manufacturing ecosystem. “The loan guarantee program for MSMEs was further promoted. MSMEs are driving the big growth in the electronics sector. If MSMEs receive loan guarantees without collateral, they can invest more. Overall, the budget is very conducive to the development of the electronics sector,” Manwani said.
Rajiv Bhalla, managing director of visual technology company Barco, said that the announcement of adding 50 destinations as a package and focusing holistically on physical and virtual connectivity is a significant step that will unlock growth and employment opportunities in the industry.
“The budget is perfectly aligned with Barco’s goal of making India a popular tourist destination with a visible impact, allowing people to enjoy compelling entertainment experiences. The establishment of AI-based solutions in health, education and sustainable cities will provide an additional push towards widespread use of technology,” said Bhalla. Arvind Bali, CEO of the Telecom Sector Skill Council said that India is with the push of the Government to set up 30 international Skill India centers, 100 world-class labs for developing applications to leverage 5G services and AI centers of excellence have the potential to nurture talent not only in domestic markets but also to the international market.
“The initiative like the Eklavya Model Residential Schools (EMRS) is also a progressive move by the government to uplift the indigenous people and empower the students to pursue new job opportunities,” Bali said.
Matthew Foxton, IDEMIA Regional President for India, said that the introduction of a unified KYC process using Digilocker and Aadhar as the primary means of identity verification is a positive step forward and will improve financial accessibility for marginalized communities.
