Shipments hold up : Electronics industry worry over supply chain disruptions

Indian electronic industry has asked the government to ensure quick clearances of shipments came from China saying delay would hit supply chain disruptions.

Amid the report that shipments coming from China being held up at Chennai ports, the India Cellular and Electronics Association (ICEA), which represents the electronics industry in India, has written to the Finance Minister, Department of Revenue at the Finance Ministry and the Central Board of Indirect Taxes and Customs (CBIC), complaining about supply chain disruptions at ports.

All China-origin imports of the electronics industry have come under adverse action by the customs at the ports without prior warning, which has impacted the supply chain, the body said.

"There was refusal to clear followed by delays, and now, talk about 100 per cent examination. The logistics of seamless movement is in total disarray," ICEA Chairman Pankaj Mohindroo wrote in the letter.

"At a time when the government is strategically targeting shifting investments of international firms, especially the US and Japan, from China to India, a disruption in the supply chain by way of a disturbance at ports will not only hurt the supply chain of foreign companies but also an entire range of Indian companies - large and small - which are entirely dependent upon Chinese imports of inputs in critical areas such as pharmaceuticals, automobiles, electronics, electrical machinery, and several others," the letter said.

"It is critical that at this stage, we ensure the smoothest possible transition of supply chains and go the extra mile to give India and global industry the confidence that India can be a viable alternative with least bureaucratic challenges when it comes to importing inputs that are required for the functioning of vital supply chains," the letter said.