Basic Customs Duty on mobile phone components to spur localisation

New Delhi: Industry body ESC on Tuesday said imposition of 2.5 per cent Basic Customs Duty (BCD) on mobile phone components, announced in the recent Budget, would promote localisation of the electronic components industry, and drive exports and employment. Electronics and Computer Software Export Promotion Council (ESC) asserted that a strong ‘pro-component’ policy is the “need of the hour”.

Coming out in support of imposition of 2.5 per cent Basic Customs Duty (BCD) on mobile phone components, Sandeep Narula, Chairman of ESC said: “The imposition of customs duty is designed to make India a strong assembling hub, and will considerably cut down the component imports, which form a significant percentage of the local manufacturing/ assembly including in the case of mobile phones, thereby enhancing foreign exchange retention.”