A host of electronic devices, including headphones, loudspeakers, smart meters and printed circuit-board assembly of smart meters will be more expensive as basic custom duties (BCD) has been increased.

For single and multiple loudspeakers, headphones and earphones, BCD has been hiked from 15 per cent to 20 per cent, governed under the Phased Manufacturing Program [PMP]. This will be applicable from February 2.

Smart meters will have to pay a 25 per cent BCD, up from 15 per cent post March 31. Even Printed Circuit Board Assembly of Smart Meters will have to pay 20 per cent in BCD, up from 10 per cent.

According to industry body for electronics hardware manufacturing MAIT, this is a much needed move to ensure growth of domestic manufacturing.

“The government has been talking about Make in India and one of the larger schemes it has come out with under this is the PLI Scheme. Now PLI Scheme alone is of no help, unless there is substantial duty protection to ensure manufacturing is happening here. Most companies are importing manufacturing of products that are very much in demand,” Nitin Kunkolienker, President, MAIT told BusinessLine.

He added, “For larger economic gain, promoting manufacturing is important. One of the initiatives to do that is creating a protection system by hiking the tariff to 20 per cent. That is what the government did. Now the companies would be compelled to assemble within the country and once the demand for manufacturing gets created, we can move on to component level manufacturing. This is beginning of opening up manufacturing here.”

The government procures smart meters in a big way from across the country and it has made preferential market access policies. “They will only purchase smart meters which are manufactured in the country. Demand aggregation policy linked with manufacturing within India will help in a big way,” Kunkolienker said.

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