New Delhi, 1st February 2020: ICEA Chairman, Mr Pankaj Mohindroo welcomed Union Budget released in Parliament today, especially with regard to emphasis on the development of the Electronics Industry. The special fund for the sector primarily focuses on Mobile phones and high-value addition components like semiconductor ATMP will create the necessary momentum to build the 190-billion-dollar mobile phone industry with exports of 110 billion dollars as envisaged in NPE 2019.
Further, the push to FDI in terms of withdrawal of Dividend Distribution Tax alongwith the recently introduced lower Corporate tax of 15%/ 22% will be a major boost to existing FDI and also act as a signal to the funds waiting outside to utilize the investment window opening in the economy. This makes India a very attractive destination for further substantial growth in FDI inflows.
ICEA Chairman also welcomed the tightening of the rules to check the misuse of FTA especially ASEAN by an escape route for duty-free imports which circumvent the duty structure.
Mr Mohindroo also welcomed the introduction of Section 28DA in the Customs Act which enables that preferential tariff treatment can be suspended denied in certain cases where importers are not fulfilling the obligation imposed on them and also where time-bound verification from the importing country is not forthcoming.
Regarding the duty increase of PCBA from 10% to 20% and Chargers from 15% to 20%, India has already built very large capacities. This change will lead to further manufacturing of 100 million-plus PCBAs and 50 million-plus Chargers.
SWS cess exemption on Mobile phones and many components has been withdrawn.
