WebinarsNew
Deep DiveNew
Explore Business Standard
The government has collected a total of Rs 3.25 lakh crore from the mobile phone industry in lieu of the Rs 19,000 crore mobile production-linked incentive doled out to the segment, according to data shared by Union minister Ashwini Vaishnaw on Wednesday. The stats shared by the Union electronics and IT minister on X showed that the government paid Rs 19,000 crore in incentives under the scheme and in return collected Rs 25,000 crore as direct tax and Rs 3 lakh crore in the form of Goods and Services Tax (GST) from the beneficiaries. "Electronics manufacturing employs 25 Lakh people; mobile manufacturing alone employs 12 Lakh. Cope harder!!" Vaishnaw said. The minister's post came in response to a media opinion video claiming drawbacks of India's attempt to push electronics manufacturing through subsidies using public money compared to the ecosystem that exists in China. According to the video, the import of components costs India more than it gains from exporting finished mobile .
The West Asia conflict and a surge in AI server demand have caused a shortage of printed circuit boards, a key hardware platform, which in turn has triggered a price rise in the electronics industry. This crunch in printed circuit boards (PCB) -- a hardware platform on which components are fixed in electronic products -- stems from rising material costs, supply chain disruptions in key shipping routes, and component diversion toward high-end artificial intelligence hardware. The shortage of PCBs comes at a critical juncture for Indian industry as several major investments amounting to over Rs 15,000 crore are in the pipeline under the Electronics Components Manufacturing Scheme (ECMS) amid rising domestic demand. A senior official of electronics manufacturing services firm Syrma SGS told PTI that the recent strike of Iran on facilities in Saudi Arabia has triggered a shortage of some of the chemicals that are used for making PCBs. "The current quarter and the subsequent quarter wil
The government has waived basic customs duty on goods used in manufacture of display assemblies, lithium ion cell and inductor coil module as it looks to promote domestic production of electronic devices like smartphones, laptops, wearables and smart TVs. The finance ministry issued three separate notifications giving effect to the basic customs duty (BCD) waiver on the goods used in manufacture of the three key components used in electronic devices. This exemption is in line with the government's efforts to promote domestic electronics manufacturing under the PLI scheme. The duty waiver would reduce import dependence and strengthen the electronics ecosystem with local production. This exemption would be valid till March 31, 2029, the notifications said.