Latest news with #IndiaCellularandElectronicsAssociation
Hans India
2 days ago
- Business
- Hans India
ICEA, IT Ministry urge states to make India a component manufacturing hub
New Delhi: States should work together and leverage Centre's scheme for encouraging domestic manufacturing of electronic components to make India a global hub of components manufacturing, the India Cellular and Electronics Association (ICEA) said on Friday. Various states such as Tamil Nadu, Assam, Uttar Pradesh and Andhra Pradesh are coming up with their own policy for encouraging components manufacturing in their respective states. In an industry event in Andhra Pradesh, Sushil Pal, Joint Secretary, MeitY, emphasised the government's commitment to fostering domestic electronics manufacturing through a hybrid scheme which offers Capex support and turnover linked incentive for components manufacturing. He appealed that states have to play a proactive role in this mission of making India a component manufacturing powerhouse for the world. Bhaskar Katamneni, Secretary, IT & EC, state government, unveiled the draft Electronics Component Manufacturing Policy (ECMP) at the event to encourage manufacturing of electronics components in the state. 'We are not only promoting ease of doing business but also enabling the 'Speed of Doing Business'. Andhra Pradesh is crafting a more competitive and agile policy framework compared to the national landscape,' said Katamneni. He said that the Andhra Pradesh-ECMP will be notified in the next 10 days. Additionally, he also discussed on the draft policy and its offerings, like catalysing investments across the component manufacturing value chain through 50 per cent capex support for components manufacturers in the state, turnover linked incentives doubling the centre's incentives, building specialised infrastructure and plug-and-play clusters, and enabling talent development, skilling and R&D support. Pankaj Mohindroo, Chairman, ICEA said that now is the time that industry should proactively resolve for high domestic value addition in the country and build a robust supply chain for electronics manufacturing. The event was attended by senior government officials from Ministry of electronics and IT and the state, along with manufacturers, industry leaders and other stakeholders of electronics ecosystem.
Time of India
13-05-2025
- Business
- Time of India
US-China truce unlikely to trip phone companies' Make-in-India play
New Delhi: The US decision to pause steep reciprocal tariffs on China for 90 days is not expected to slow down the pace of growth in domestic production of mobile phones and related components in India, as the country still has a 20% tariff arbitrage that can be turned into an opportunity, industry executives and experts the geopolitical situation still favours India as an alternative to global supply chains, which are being diversified to reduce dependence on China, they said. They, however, warned that given the pace of changes in global developments, particularly from the US administration, nothing can be taken for granted. Despite the agreement reached between the US and China in Geneva, India continues to have a 20% tariff arbitrage over China for exports to the US. But this arbitrage certainty is only till July 9 - Washington has agreed to suspend reciprocal tariffs on India until then. If India and the US fail to reach an agreement, India may again face 26% tariffs, which will put the country in a disadvantage. But this looks less likely as both countries are working on a bilateral trade agreement, and the industry is hopeful of a positive outcome. "Since smartphones, laptops and tablets were excluded from the reciprocal tariffs, there won't be any significant change for India's manufacturing ecosystem as of now," Pankaj Mohindroo, chairman of the India Cellular and Electronics Association, told ET. US-bound exports of products like smartphones, laptops and tablets from India attract zero duty and still have an edge over exports from China which must pay 20% duty, he said. In the latest deal between the US and China, the reciprocal tariffs have been reduced from 125% to 10%. The 25% tariff that the then Trump administration imposed in 2018 on several imports and the 20% duty on the opioid drug fentanyl stay. When it comes to the Indian manufacturing space, the government's incentive schemes combined with the current scale of production has been able to offset the 7-10% cost disability compared with China in manufacturing. Industry executives remain upbeat about global interest in investing in the manufacturing ecosystem in India. "India still has some residual disability when compared to Vietnam and we are working with the government to remove the bottlenecks. We remain cautiously optimistic," Mohindroo said. "Global companies will not stop looking beyond China since the situation is still very players in the electronics industry operate with an around 5% net margin, except for Apple, and a 30% duty differential is still massive for them. So, the world will continue looking at other countries," an executive from an electronics contract manufacturing firm told ET. Other executives said the industry is seeing US-China development as an icebreaker, signalling an intent from both sides to find a common ground and move towards a more balanced trade relationship. "This reprieve creates a slight uncertainty for India regarding previously held plans and expectations. Before this deal, heavy import duties on Chinese goods made India appear as the next best alternative," an industry executive said.
Time of India
13-05-2025
- Business
- Time of India
US-China truce unlikely to trip phone companies' Make-in-India play
New Delhi: The US decision to pause steep reciprocal tariffs on China for 90 days is not expected to slow down the pace of growth in domestic production of mobile phones and related components in India, as the country still has a 20 per cent tariff arbitrage that can be turned into an opportunity, industry executives and experts said. Moreover, the geopolitical situation still favours India as an alternative to global supply chains, which are being diversified to reduce dependence on China, they said. They, however, warned that given the pace of changes in global developments, particularly from the US administration, nothing can be taken for granted. Despite the agreement reached between the US and China in Geneva, India continues to have a 20 per cent tariff arbitrage over China for exports to the US. But this arbitrage certainty is only till July 9 - Washington has agreed to suspend reciprocal tariffs on India until then. If India and the US fail to reach an agreement, India may again face 26 per cent tariffs, which will put the country in a disadvantage. But this looks less likely as both countries are working on a bilateral trade agreement, and the industry is hopeful of a positive outcome. "Since smartphones, laptops and tablets were excluded from the reciprocal tariffs, there won't be any significant change for India's manufacturing ecosystem as of now," Pankaj Mohindroo, chairman of the India Cellular and Electronics Association, told ET. US-bound exports of products like smartphones, laptops and tablets from India attract zero duty and still have an edge over exports from China which must pay 20 per cent duty, he said. In the latest deal between the US and China, the reciprocal tariffs have been reduced from 125 per cent to 10 per cent . The 25 per cent tariff that the then Trump administration imposed in 2018 on several imports and the 20 per cent duty on the opioid drug fentanyl stay. When it comes to the Indian manufacturing space, the government's incentive schemes combined with the current scale of production has been able to offset the 7-10 per cent cost disability compared with China in manufacturing. Industry executives remain upbeat about global interest in investing in the manufacturing ecosystem in India. "India still has some residual disability when compared to Vietnam and we are working with the government to remove the bottlenecks. We remain cautiously optimistic," Mohindroo said. "Global companies will not stop looking beyond China since the situation is still very players in the electronics industry operate with an around 5 per cent net margin, except for Apple, and a 30 per cent duty differential is still massive for them. So, the world will continue looking at other countries," an executive from an electronics contract manufacturing firm told ET. Other executives said the industry is seeing US-China development as an icebreaker, signalling an intent from both sides to find a common ground and move towards a more balanced trade relationship. "This reprieve creates a slight uncertainty for India regarding previously held plans and expectations. Before this deal, heavy import duties on Chinese goods made India appear as the next best alternative," an industry executive said.
Time of India
12-05-2025
- Business
- Time of India
US-China truce unlikely to trip phone companies' Make-in-India play
New Delhi: The US decision to pause steep reciprocal tariffs on China for 90 days is not expected to slow down the pace of growth in domestic production of mobile phones and related components in India, as the country still has a 20% tariff arbitrage that can be turned into an opportunity, industry executives and experts said. #Operation Sindoor The damage done at Pak bases as India strikes to avenge Pahalgam Why Pakistan pleaded to end hostilities Kashmir's Pahalgam sparks Karachi's nightmare Moreover, the geopolitical situation still favours India as an alternative to global supply chains, which are being diversified to reduce dependence on China, they said. They, however, warned that given the pace of changes in global developments, particularly from the US administration, nothing can be taken for granted. Despite the agreement reached between the US and China in Geneva, India continues to have a 20% tariff arbitrage over China for exports to the US. But this arbitrage certainty is only till July 9 - Washington has agreed to suspend reciprocal tariffs on India until then. If India and the US fail to reach an agreement, India may again face 26% tariffs, which will put the country in a disadvantage. But this looks less likely as both countries are working on a bilateral trade agreement, and the industry is hopeful of a positive outcome. "Since smartphones, laptops and tablets were excluded from the reciprocal tariffs, there won't be any significant change for India's manufacturing ecosystem as of now," Pankaj Mohindroo, chairman of the India Cellular and Electronics Association, told ET. US-bound exports of products like smartphones, laptops and tablets from India attract zero duty and still have an edge over exports from China which must pay 20% duty, he said. In the latest deal between the US and China, the reciprocal tariffs have been reduced from 125% to 10%. The 25% tariff that the then Trump administration imposed in 2018 on several imports and the 20% duty on the opioid drug fentanyl stay. When it comes to the Indian manufacturing space, the government's incentive schemes combined with the current scale of production has been able to offset the 7-10% cost disability compared with China in manufacturing. Industry executives remain upbeat about global interest in investing in the manufacturing ecosystem in India. "India still has some residual disability when compared to Vietnam and we are working with the government to remove the bottlenecks. We remain cautiously optimistic," Mohindroo said. "Global companies will not stop looking beyond China since the situation is still very players in the electronics industry operate with an around 5% net margin, except for Apple, and a 30% duty differential is still massive for them. So, the world will continue looking at other countries," an executive from an electronics contract manufacturing firm told ET. Other executives said the industry is seeing US-China development as an icebreaker, signalling an intent from both sides to find a common ground and move towards a more balanced trade relationship. "This reprieve creates a slight uncertainty for India regarding previously held plans and expectations. Before this deal, heavy import duties on Chinese goods made India appear as the next best alternative," an industry executive said.
Time of India
09-05-2025
- Business
- Time of India
Trade pact with UK to boost India's electronics exports: ICEA
NEW DELHI: The recently signed UK-India free-trade agreement (FTA) will boost the opportunities for homegrown electronics industry to have a major share in the UK's electronics imports, the India Cellular and Electronics Association ( ICEA ) said on Friday. 'Today, the UK imports $76 billion of electronics goods from various geographies and a mere $2 billion from India. This FTA will facilitate export opportunities for Indian electronics industry to have a major share of the UK's electronics imports, helping India move swiftly towards its electronics export target of $180–200 billion by 2031,' Pankaj Mohindroo, chairman of ICEA, said in a statement. The pact, signed on May 6, 2025, between the two major economies, will positively impact manufacturing across labour and technology-intensive sectors and will open up export opportunities for sectors such as auto parts, organic chemicals, goods and toys, smartphones, and optical fibre cables, among others. 'This will substantially improve Indian goods competitiveness in the UK vis-a-vis other countries,' the Central government said in a statement recently. The ICEA, in turn, said that the FTA will shape the future of the Indian electronics manufacturing sector and partnerships with global value chains (GVCs). The agreement is set to double bilateral trade from $60 billion to $120 billion by 2030, with India's exports gaining unprecedented market access in the UK, according to the industry association. The agreement eliminates tariffs on 99% of Indian exports, expanding special access to domestically manufactured electronics, engineering goods, auto components, IT services, and more. 'The FTA eases the employment opportunities for Indian professionals, including contractual service suppliers, business visitors, intra-corporate transferees and dependent children of intra-corporate transferees with right to work,' ICEA said.
