The Electronics Industries Association of India (ELCINA) acknowledges the positive steps announced in the Union Budget 2024-25 presented by Union Finance Minister Smt. Nirmala Sitharaman, which includes essential measures impacting the electronics sector. The budget introduces significant changes in Customs Duties and extends exemptions that will support value-added manufacturing within the industry.
Key Budget Announcements:
- Reduction in Customs Duties:
- Cellular Mobile Phones and Accessories: The Basic Customs Duty (BCD) on cellular mobile phones, chargers/adapters, and Printed Circuit Board Assemblies (PCBAs) has been reduced from 20% to 15%.
- Oxygen Free Copper (OFC): The BCD on OFC strips used in resistor manufacturing has been reduced to Nil, subject to Import of Goods at Concessional Rate of Duty (IGCR) conditions.
- Telecom Equipment: The BCD on PCBAs for specified telecom equipment has been increased from 10% to 15%.
- Raw Materials: The exemption entries for input items/raw materials for manufacturing connectors have been expanded to include additional items.
- Extended Exemptions:
- Notifications providing exemptions on import duties for inputs and capital goods have been extended from one year to five years, aligning with ELCINA’s recommendations.
Shri. Rajoo Goel, Secretary General, ELCINA, has expressed appreciation on behalf of the industry for the Union Budget 2024-25, noting its positive changes for the electronics sector. “We believe the above measures support and continue the initiatives taken in last few years to promote value added manufacturing. However, ELCINA and the industry at large are awaiting the announcement of a robust Scheme for promotion of electronic components, parts and modules manufacturing. A detailed representation for the same with analysis of the segment-wise current demand and supply scenario has been presented to MeitY. We urge the Government to take an urgent decision and provide much needed support to this value added manufacturing segment of the ESDM industry”.
ELCINA’s Response:
ELCINA appreciates the Government’s efforts to address some of the pressing issues faced by the electronics sector. The reductions in customs duties and extension of exemptions are positive steps towards supporting the industry’s growth and competitiveness. However, ELCINA emphasizes the need for a comprehensive scheme dedicated to promoting the manufacturing of electronic components, parts, and modules.
Components and key Modules used in electronic equipment have been a major stumbling block for the development of a sustainable ESDM sector in India. ELCINA believes that till such time that this shortcoming is not addressed, we will always be dependent on overseas suppliers and will struggle to take a leadership position in the global industry. Urgent measures in this area are required.
