<p>Aimed at boosting ‘Made in India’ mobile phones and its components, the upcoming Budget is likely to propose lower duty on domestically-produced handsets and parts including keypad, USB cable, and receiver</p>.<p>. <br /><br />Officials in the Ministry of Electronics and Information Technology suggested to the Ministry of Finance in the pre-Budget meeting that if duty on locally-produced parts reduced, it would not only encourage domestic manufacturers to produce more components, but will also reduce the cost of smartphones made in India. <br /><br />With 42 mobile phone manufacturers and 15 component manufacturing units having already set up their plants in India, by giving tax sops to parts-makers, the country can attract more such companies, an official in the ministry said. <br /><br />Earlier, the Indian Cellular Association (ICA), which represents all major handset-makers, had suggested the government to lower the duty on India-made components such as USB cable, keypad, receiver, and manufacturing of metal and plastic sub-components, and to impose more tax on imported goods. <br /><br /> The country has generated Rs 54,000 crore worth of locally-made phones in 2015-16, and it is set to reach close to Rs 1 lakh crore by this fiscal. Noida, Gurugram, Pune, and Hyderabad emerged as major hubs for mobile phone- and component-makers. <br /><br />Currently, imported mobile phones are levied a 12.5% countervailing duty, while 1% excise duty is levied on domestic manufacturing, making local assembly 11.5% cheaper. The same difference was extended to chargers, batteries and headsets in the last Budget. <br /><br />Globally, the electronics industry is looking for new destination, following the high cost of manufacturing in China, and India is trying to attract more companies, said the official.<br />DH News Service <br /></p>
<p>Aimed at boosting ‘Made in India’ mobile phones and its components, the upcoming Budget is likely to propose lower duty on domestically-produced handsets and parts including keypad, USB cable, and receiver</p>.<p>. <br /><br />Officials in the Ministry of Electronics and Information Technology suggested to the Ministry of Finance in the pre-Budget meeting that if duty on locally-produced parts reduced, it would not only encourage domestic manufacturers to produce more components, but will also reduce the cost of smartphones made in India. <br /><br />With 42 mobile phone manufacturers and 15 component manufacturing units having already set up their plants in India, by giving tax sops to parts-makers, the country can attract more such companies, an official in the ministry said. <br /><br />Earlier, the Indian Cellular Association (ICA), which represents all major handset-makers, had suggested the government to lower the duty on India-made components such as USB cable, keypad, receiver, and manufacturing of metal and plastic sub-components, and to impose more tax on imported goods. <br /><br /> The country has generated Rs 54,000 crore worth of locally-made phones in 2015-16, and it is set to reach close to Rs 1 lakh crore by this fiscal. Noida, Gurugram, Pune, and Hyderabad emerged as major hubs for mobile phone- and component-makers. <br /><br />Currently, imported mobile phones are levied a 12.5% countervailing duty, while 1% excise duty is levied on domestic manufacturing, making local assembly 11.5% cheaper. The same difference was extended to chargers, batteries and headsets in the last Budget. <br /><br />Globally, the electronics industry is looking for new destination, following the high cost of manufacturing in China, and India is trying to attract more companies, said the official.<br />DH News Service <br /></p>
