Changes proposed in the duty structure for electronic components could help create a Rs. 10,000-crore industry in the next two years, say experts.
According to the Budget, local manufacturing of mobile chargers, batteries and headsets will attract only two per cent excise duty while imports will be slapped with 29.441 per cent. This is enough incentive for local manufacture of these components. Moreover, sub-components will also have significantly lower import duty. “As per estimates, total production worth Rs. 7,000-10,000 crore of mobile adapters/chargers, batteries and wired headsets can be achieved by 2018 based on this initiative,” said Pankaj Mohindroo, president at The Indian Cellular Association.