Explanation:

At present, India imports basic chipset for mobile handsets but there has been a spurt in the production of other mobile components. CBEC has recently imposed a 10% duty on imports of key smartphone components such as populated printed circuit boards (PCBs), camera modules and connectors. At present there is zero import duty imposed on the three components. This decision will push local assembly or manufacturing of these components as companies who make here will get a price advantage over those who don’t. This decision follows the government’s announcement to impose 20% basic customs duty (BCD) on fully built mobile phones, which came into effect from February 1, 2018 as part of its phased manufacturing program (PMP). Since 2014, import duties have acted as catalyst to grow investment into mobile phone manufacturing in India. Over the next 10-12 years, PMP aims to make India a manufacturing hub of mobile components. PMP was launched for promotingthe growth of domestic manufacturing of Cellular mobile handsets only. It has been proposed to extend this program to other sectors as well. This programme is under Ministry of Electronics and Information Technology (MieTY). Its overall aim is to impose duties (differential duty regime) and give tax reliefs and incentives on select products involved in domestic manufacturing of cellular handsets. It is called phased manufacturing programme because it will give fiscal benefits to domestic manufacturing of various components of cellular handsets in different fiscals.