Union Budget 2015: Imported Mobiles, Tablets Price May Go Up, Local Producers Gain

Indian Cellular Association National President Pankaj Mohindroo said that government’s announcement on CENVAT leads to increase countervailing duty on imports to 12.5 percent on imposed on imported mobile and tablets which is going to make strong case for manufacturing within country.

“Increase in CVD will increase price of imported products but domestic manufacturers like Samsung and Micromax stand to gain from this,” Mohindroo said.

Government has also removed special additional duty on components of tablet which ICA National President said is a great advantage for domestic manufacturers.

ELCINA Electronics Industries Association of India said that not exempting printed circuit board from SAD will encourage local sourcing of components and is a positive step for domestic manufacturing.

“Continuing SAD on populated PCB will encourage people to gets them made in India. This will boost domestic electronic manufacturing services,” ELCINA Secretary General Rajoo Goel said.

In addition to this blanket announcement to reduce corporate tax from 30 percent to 25 percent also rejoiced industry players.

“Reduction of corporate tax to 25 percent will make up more competitive with other Asian economies where bulk of manufacturing investment was going,” Mohindroo said.
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