Duty cut on smartphone parts to hit electronics ecosystem, trigger job loss: GTRI
Live MintNew Delhi, Jan 7 Any reduction in the customs duty on smartphone parts in the forthcoming budget will harm India's developing component ecosystem, discourage investment, increase imports, and make local firms uncompetitive, potentially resulting in job losses, think tank GTRI said on Tuesday. Highlighting six key risks of reducing tariffs, he said any reduction would harm India's developing component ecosystem, discourage investment, and hurt the goal of self-reliance; and would not help pushing exports as current export schemes already allow duty-free imports for manufacturing exports. The rising use of local parts is driven by India's production of key components for mid- and low-end phones like printed circuit boards, display modules, camera modules, battery packs, smart phone chargers and adapters, wiring harnesses, microphones and speakers, SIM card holders, and USB connectors," it said. However, the ecosystem is still developing and needs protection, and reducing import tariffs would allow duty-free imports, making it harder for local firms to compete and would force them to shut down, it said.