Union Budget 2022: Finance Minister Nirmala Sitharaman announced during the Union Budget speech in parliament that concessions in customs duty will be given to manufacturers of consumer electronics devices, to promote manufacturing across wearables and specific mobile phone components.
"Customs duty rates have been calibrated to provide a greater rate structure to facilitate domestic manufacturing of wearable devices, shareable devices, and electronic smart meters. Duty concessions are being given to parts of transformer of mobile phone, chargers, camera lens of mobile camera module, and certain other such items. This will enable domestic manufacturing of high growth electronic items," the Finance Minister said.
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This concession in customs duties comes at a time when the industry has been facing a massive shortage in components, particularly chipsets, which has caused problems across the supply chain. Industry body Cellular Operators Association of India had estimated that high customs duty was disrupting the cost effectiveness of telecom companies. Around 85% of telecom equipment in India is imported.
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