Budget 2023: Electronic components industry body demands extension of duty concession on camera lens to other segments

The government's decision to remove import duty from the camera lens and its components will benefit mobile phone manufacturers in India, and it should be extended to all other electronic product segments that use camera modules, electronic components industry body ELCINA said on Thursday.

To deepen domestic value addition in the manufacture of mobile phones, Finance Minister Nirmala Sitharaman in her budget speech announced relief in customs duty on the import of certain parts and inputs like a camera lens and continued the concessional duty on lithium-ion cells for batteries for another one year.

"Decision to remove import duty on the camera lens and its components will help mobile phone companies and electronic manufacturing services (EMS) companies shortlisted under the PLI scheme. Government should extend the benefit of importing camera lenses at nil customs duty to other product segments as well. It will help improve product quality as well as lowering the cost of products like CCTVs, laptops etc," ELCINA Secretary General Rajoo Goel told PTI.

The extending benefit of the camera lens at nil import duty to other segments will be in line with the government vision to boost overall electronics production as well as export from India, he added.

"Overall, the budget gives a huge push for demand for technology products with capital expenditure of Rs 10 lakh crore, which includes major investments in the infrastructure sector. Now, technology has become centric in the development of all sectors. Therefore, demand for electronic products will also see a huge boost during the year," Goel said.

The finance minister has also announced a reduction of customs duty on parts of open cells of TV panels to 2.5 per cent from 5 per cent earlier.

"This year's budget is a strong effort to consolidate the Indian economy in post-pandemic dynamics, raising the personal tax exemption limit will certainly boost consumption and the electronics industry will surely benefit from it.

"Continuing the import duty cuts on Camera Lens and batteries for mobile manufacturing is a welcome step and this will continue to fuel the remarkable growth India has witnessed in domestic manufacturing," EMS player Optiemus Electronics, Managing Director, A Gururaj said.

EMS (Electronics Manufacturing Services) player Dixon Technologies India Vice Chairman and Managing Director Atul Lall said the reduction of import duty on open cells of TV panels will boost their local manufacturing.

"This will promote domestic manufacturing of open cells and also reduce their cost marginally. This encourages the deepening of manufacturing in India. At present, they are getting imported," he said.

Sahasra Semiconductors chairman and managing director Amrit Manwani said that the electronic sector will gain from the promotion of research and development in the budget.

"All this will create demand for electronics hardware and create jobs as well in the electronics industry. Finance Minister has laid a lot of emphasis on skill development for green energy products, drones, robotics, and IoT. All these are positive developments for the electronics sector," Manwani said.

He said that the 50-year loans to the state will help states like Uttar Pradesh that are creating an ecosystem for electronics manufacturing.

"Credit Guarantee Scheme for MSME has been further incentivised. MSMEs are driving major growth in the electronics sector. When MSMEs get credit guarantees without collaterals, then they will be able to invest more. Overall, the budget is very conducive to the development of the electronics sector," Manwani said.

Visual technology firm Barco, Managing Director, Rajiv Bhalla said that the announcement around adding 50 tourist destinations as a whole package and focusing holistically on physical as well as virtual connectivity is a significant step that will unlock growth and job opportunities in the sector.

"The Budget is perfectly aligned with Barco's aim to make India a popular tourist destination with a visible impact, allowing people to enjoy compelling entertainment experiences. Setting up AI-based solutions in health, education, and sustainable cities will give an additional push towards the extensive use of technology," Bhalla said.

Telecom Sector Skill Council CEO Arvind Bali said that with the government's push to establish 30 Skill India international centres, 100 premier labs for developing applications to use 5G services, and centres of excellence for AI, India has the potential to deliver talent not only across domestic markets but also to the international market.

"The initiative like the Eklavya Model Residential Schools (EMRS) is also a progressive move by the government to uplift the tribal population and empower the students to take up new job opportunities," Bali said.

IDEMIA Regional President for India, Matthew Foxton said that the adoption of a unified KYC process, utilising Digilocker and Aadhar as the primary means of identity verification, is a positive step forward and will increase financial accessibility for marginalised communities.