Budget aims to deepen electronic goods value chain; capex target disappoints industry
Subscribe to enjoy similar stories. Budget 2025-26 has placed emphasis on the backward integration of India’s electronic goods value chain and other capital-goods industries with a reduction in basic customs duty on components. Among the proposals are a reduction in the duty on open cells for television panels from 10%-15% to 5% and parts of open cells to from 2.5% to 0%.
Most of these panels, which account for 60-65% of the cost of a TV, are currently imported. To encourage faster adoption, the import duty on display panels has been increased from 10% to 20%. To boost the mobile phones and electric vehicles value chains, the duties on parts used in printed circuit boards, camera modules and various other components of mobile phones have been removed.
“To the list of exempted capital goods, I propose to add 35 additional capital goods for EV battery manufacturing, and 28 additional capital goods for mobile phone battery manufacturing," the finance minister said in her Budget speech. Also read: Union Budget 2025 strengthens the middle class for a consumption-driven economy These initiatives follow the building of a mobile phone manufacturing ecosystem in the country through production linked incentives (PLI) schemes, and emphasise backward integration into component manufacturing from the initial thrust, which was limited to final product assembly. However, the absence of an announcement on the much-awaited PLI scheme for components disappointed the industry.
Read more on livemint.com
