For ‘Make in India’: No basic custom duty on 22 items
Finance minister Arun Jaitley has abolished basic custom duty on imported raw material in order to provide further thrust to the Make in India campaign.business Updated: Mar 01, 2015 00:38 IST
Finance minister Arun Jaitley has abolished basic custom duty on imported raw material in order to provide further thrust to the Make in India campaign.
The move is expected to boost local manufacturing of electronics as custom duty has come down to zero from 10%.
The aim was to reduce custom duty on 22 items — organic LED television panels, ulexite ore, material used for manufacturing telecommunication grade optical fibre cables and black-light unit module used to manufacture LCD and LED television panels.
The move has been cheered by electronic makers. “This will boost assembly and value-added manufacturing. Abolishment of basic custom duty on back-light unit module and reducing duty on magnetron used in microwave ovens are welcome,” said Anirudh Dhoot, director, Videocon.
However, manufacturers did not disclose if this will reduce prices of electronics. “We hope the government’s efforts will turn manufacturing in India into a more profitable and business-friendly proposition,” said Soon Kwon, managing director, LG India.
The import-dependent electronics industry echoed few concerns. “The import duty is high as we import televisions. We hope for some standard operating procedures,” said Devita Saraf, CEO of Mumbai-based Vu Technologies, makers of LED televisions.