People across the country may have to spend more for smartphones from the upcoming financial year due to having additional duty proposed in the new budget. The prices of the handset are expected to be increased because of the two percent additional duty imposed on the PCBs (Printed Circuit Boards) from April 1.
The PCBs in the country are currently imported from China and Taiwan because of not having any local manufacturing plant across the country. As per Tarun Pathak, analyst, Counterpoint research, nearly Rs 40,000 crores had been spent over PCBs in 2016, which account for nearly 54 percent of the cost of making a handset.
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According to Manish Sharma, president, Consumer Electronics and Appliances Manufacturers Association (CEAMA), the step has been taken to encourage the local PCB manufacturing in India, Manish said, “Customers may have to bear that extra pinch of additional cost for handsets as the government is gearing up for local manufacturing.”
Vivek Zhang, chief marketing officer, Vivo India, said, “In the long run, it will give a boost to the government’s efforts in pushing the Make in India campaign. Over time, we can expect smartphone manufacturing in the country by major players in India.”
