to push for \'make in india\', modi govt plans duties on key smartphone component

by:Rocket PCB     2019-10-20
According to two government sources, India is exploring new tariffs on the import of key smartphone components. India is exploring new tariffs on the import of key smartphone components, the latest in a series of initiatives aimed at promoting domestic manufacturing into the world\'s second-largest --
The biggest smartphone market
The Ministry of Electronics and Information Technology of India has put forward a proposal to impose a 10% tariff on imported densely populated printed circuit boards (PCBs)
Two government officials told Reuters this week that they declined to be named because the matter was not public.
PCB is the foundation of key components such as processors, memory, and wireless chipsets, which are the core of electronic devices.
Once the Pcb is filled with components, it accounts for about half of the cost of smartphones.
At present, most smartphone manufacturers import the pcb that has already loaded the components into India and then assemble it locally.
Government and industry insiders said that if the Indian Ministry of Finance made clear the proposal for new tariffs, they may be levied within a few days, so the import of densely populated PCB is more expensive, and push players to install components locally.
India\'s Ministry of Finance, electronics and trade did not respond to requests for comment. In the near-
In the long run, these actions may stimulate companies such as Apple to expand their limited manufacturing and assembly capabilities in India and bring advantages to companies such as Samsung Electronics in South Korea and Lava, a local company, there are already machines that install components on the pcb.
Apple did not immediately respond to requests for comment.
A company executive told Reuters in a recent interview that China\'s OPPO is also installing surface-mounted machines in a new facility built in northern India.
According to two industry insiders, Foxconn is one of the world\'s largest contract manufacturers of electronic products, and the company\'s local department is also capable.
Foxconn could not be reached for comment immediately.
\"It will be a step in a good direction.
How is this full-
\"Mass manufacturing is happening . \"N. Rai, co-
Founder of Lava, he added that the move will also gradually boost local production of components such as smartphone cameras and screens.
If this initiative is implemented, it will be the latest step in Prime Minister Modi\'s phased manufacturing plan (PMP)
A plan released in 2016 is to increase local value every year in the field of smartphone manufacturing.
India sold about 0. 134 billion smartphones last year, the second largest in the world.
The biggest market after China
Since then, the Modi government has raised a series of low tariffs
Evaluate items such as batteries, chargers and imported mobile phones.
However, any move to impose tariffs on densely populated PCBs is likely to be picked up by several countries and raise concerns about a trade war.
Last week, countries such as China, Canada and the United States expressed concern to the World Trade Organization about India\'s tariffs on such equipment.
In last month\'s annual budget, the Indian government outlined higher tariffs on products including imported smartphones and a range of components.
Modi wants to turn India into a global manufacturing hub to boost economic growth and create tens of millions of new jobs.
While his flagship \"Made in India\" program is still a long way from delivering on lofty work commitments, Modi has achieved some success in PMP.
Technology research firm Counterpoint says more than 100 local factories in India are assembling accessories such as mobile phones and chargers, batteries, power supplies and headphones.
According to a document from the Ministry of Public electronics, PMP currently envisages assembling camera modules and printed circuit boards locally for the fiscal year starting in April 1.
Tarun Pathak, deputy director of Counterpoint, said: \"India has plans to gradually increase tariffs on all parts . \" It will gradually force more domestic manufacturing, he added.
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