Mo­biles to be dearer by 3% due to duty on dis­play: ICEA

Business Standard - - COM­PA­NIES - PRESS TRUST OF IN­DIA New Delhi, 2 Oc­to­ber

Mo­bile phone prices are ex­pected to rise about 3 per cent as the gov­ern­ment has im­posed 10 per cent duty on the im­port of dis­plays, in­dus­try body ICEA said on Fri­day.

The duty on dis­play assem­bly and touch panel was pro­posed to be ap­plied from Oc­to­ber 1 un­der a phased man­u­fac­tur­ing pro­gramme (PMP) an­nounced in 2016 in con­sen­sus with the in­dus­try.

“There will be an im­pact on mo­bile phone prices be­tween 1.5 and 3 per cent,” in­dus­try body In­dia Cel­lu­lar and Elec­tron­ics As­so­ci­a­tion (ICEA) Na­tional Chair­man Pankaj Mo­hin­droo said in a state­ment. ICEA mem­bers in­clude Ap­ple, Huawei, Xiaomi, Vivo, and Win­stron.

The ob­jec­tive of the PMP was to fa­cil­i­tate man­u­fac­tur­ing of com­po­nents in­dige­nously and dis­cour­age im­ports there­after.

"In a rare miss, the in­dus­try could not ramp up dis­play assem­bly pro­duc­tion ad­e­quately be­cause of Covid-19 and NGT em­bargo. We con­tinue to be fully com­mit­ted to do­mes­tic man­u­fac­tur­ing of sub­assem­blies and com­po­nents. How­ever, now, the fo­cus is to take a lion's share of global mar­kets and not just im­port sub­sti­tu­tion," Mo­hin­droo said.

Vedanta Group Chair­man Anil Agar­wal-pro­moted Vol­can In­vest­ments had pro­posed to set up the coun­try's first LCD man­u­fac­tur­ing unit in 2016 with in­vest­ment of around ~68,000 crore in the name of Twin­star Dis­play Tech­nolo­gies. How­ever, the pro­posal did not get the gov­ern­ment's ap­proval.

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