Import duty hike impact: Assembly firms to have an edge over makers

The duty hikes are in line with the government's Phased Manufacturing Programme, which aims to increase domestic manufacturing of smartphones to 500 million units a year by 2019

Increasing import duty hikes on electronic goods has left the sector in limbo. The surge in rates in recent months, once in December last year and another in the Union Budget in February, has put pressure on vendors, and traders fear it may affect margins. And with no new proposals on the cards to set up component manufacturing units, Chinese firms assembling locally in the country are expected to be at an advantage against their Indian counterparts.

Since last December, import duty on electronic goods, including cellphones, smart watches and wearables, have gone up to 20 per cent from 10