India plans to support 3 billion dollars and customspit lights for the electronic sector

The Government in India is considering providing new help to manufacturers of electronic components and reducing customs duties on imports to support local manufacturing, especially for smartphones manufactured by companies such as “Apple”. The Ministry of Electronics and Information Technology has proposed to support 230 billion rupees ($ 2.7 billion) for components such as batteries and cameras, according to people who are familiar with the matter, who asked not to reveal their identity as the reservations are special. The ministry also recommended to reduce customs definitions on some electronic components, which is a demand for electronic manufacturers, which according to one person will help lower production costs. The Indian Council of Ministers will make the final decision on proposals, and if approved, details in the next government budget may be announced during February, according to the persons. The Ministry of Electronics and Information Technology and the Ministry of Finance in India immediately did not respond to requests for more information. The newspaper “Economic Times of India” previously reported on the support plan. India has provided billions of dollars to attract ‘Apple’ and ‘Samsung’. Premier Narendra Moody government has spent billions of dollars on incentives to attract businesses such as “Apple” and “Samsung Electronics” to establish manufacturing facilities in India. As a result, Apple’s export of iPhone phones in India has grown rapidly. The authorities now want to benefit from this momentum by creating a broader supply chain for smartphone manufacturers, which imports most of their electronic components from countries such as China. Some of the ingredients targeted by the proposed support plan include exact processors, memory components, storage and printed circuit paintings, and camera ingredients, such as lenses and lithium -ion cells, one person said. Another person said that the value of the support provided to electronic components differs based on each component. “This is one of the most important ways to motivate companies to enter global value chains, although positive results will not be clear or concrete in medium to long term,” Madkay Global Financial Services said. “The incentives previously offered have contributed to improving efficiency in the sector, which is the way the government can build on it.” The government’s “Niti Ayog” research foundation said last year in the report that the government should lead its customs fees and provide financial incentives to support the production of electronic components in India. The country in South Asia faces a fierce competition from competing countries such as Vietnam to attract foreign businesses to diversify their supply chains from China. The customs duties imposed on the components of the electronic industry at the moment ranges from zero to 20%, the highest range between 5% and 6% compared to countries such as China and Malaysia, according to the “Niti Ayog” Foundation.