Rise in customs duty from zero to 10-20%: Ericsson, Nokia say duty hike will hit gear making

European telecom gear vendors Ericsson and Nokia have told the government that the customs duty imposed on components for telecom equipment will impact the cost effectiveness of local manufacturing at a time when a similar levy on finished products hasn’t been increased correspondingly.

Nokia’s India head Sanjay Malik told ET that the duty hike will increase the overall cost of production in India.