{"id":1273617,"date":"2023-09-21T07:56:32","date_gmt":"2023-09-21T02:26:32","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1273617"},"modified":"2023-09-21T07:57:07","modified_gmt":"2023-09-21T02:27:07","slug":"govt-can-impose-graded-customs-duty-on-telecom-components-for-boosting-make-in-india-manufacturing","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/govt-can-impose-graded-customs-duty-on-telecom-components-for-boosting-make-in-india-manufacturing\/","title":{"rendered":"Govt Can Impose Graded Customs Duty On Telecom Components For Boosting Make In India Manufacturing"},"content":{"rendered":"\n<p>India is considering imposing customs duties on telecom components in a phased manner.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/09\/Untitled-design-5-2-1280x720-1-1024x576.jpg\" alt=\"Govt Can Impose Graded Customs Duty On Telecom Components For Boosting Make In India Manufacturing\" class=\"wp-image-1273633\" srcset=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/09\/Untitled-design-5-2-1280x720-1-1024x576.jpg 1024w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/09\/Untitled-design-5-2-1280x720-1-300x169.jpg 300w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/09\/Untitled-design-5-2-1280x720-1-768x432.jpg 768w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/09\/Untitled-design-5-2-1280x720-1.jpg 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>What is the proposal?<\/strong><\/p>\n\n\n\n<p>The intention is to boost the domestic supply chain and simultaneously transform the country into a global telecom gear manufacturing hub.<\/p>\n\n\n\n<p>The proposal, currently under examination by the Department of Telecommunications (DoT), suggests an initial 10 per cent import duty in January and increasing it to 15 per cent by October next year.<\/p>\n\n\n\n<p><strong>Components affected<\/strong><\/p>\n\n\n\n<p>Components that would attract this duty includes packaging items, antennae, WiFi switches, plastic and metal housing items, wires, cables, USB ports, connectors, power adaptors, and other electrical and mechanical items relevant to the telecom industry.<\/p>\n\n\n\n<p>All this is part of the government&#8217;s Phased Manufacturing Programme (PMP), designed to incentivise local production and enhance value addition.<\/p>\n\n\n\n<p>The goal of this plan is to boost India&#8217;s telecom gear manufacturing capabilities.<\/p>\n\n\n\n<p><strong>To promote domestic production<\/strong><\/p>\n\n\n\n<p>It would start with promoting local production of low-value accessories and gradually moving to high-value components.<\/p>\n\n\n\n<p>This would be supported by raising the basic customs duty on imported accessories and components.<\/p>\n\n\n\n<p><strong>Telcos to obtain permits and govt approval<\/strong><\/p>\n\n\n\n<p>The Directorate General of Foreign Trade (DGFT) would implement an import licensing regime if the proposal is approved.<\/p>\n\n\n\n<p>Telecom companies would be required to obtain permits and prior government approval for importing network gear used in fiber-based home broadband networks.<\/p>\n\n\n\n<p><strong>Pushback<\/strong><\/p>\n\n\n\n<p>The telecom industry has expressed hesitation regarding the proposed customs duties on imported components.<\/p>\n\n\n\n<p>Industry leaders argue that India lacks an immediate local ecosystem for these components.<\/p>\n\n\n\n<p>This would lead to supply chain disruptions and increased costs for network deployment.<\/p>\n\n\n\n<p><strong>Government\u2019s motivation&nbsp;<\/strong><\/p>\n\n\n\n<p>However, the government is motivated to push for self-reliance in the telecom sector due to national security concerns and the desire to encourage participation in the production-linked incentive (PLI) scheme for network gear.<\/p>\n\n\n\n<p>The potential customs duties could <a href=\"https:\/\/www.indiatoday.in\/business\/story\/india-government-customs-duty-15-per-cent-telecom-components-2437518-2023-09-19\">discourage <\/a>imports and ensure that telecom gear manufacturers actively use locally available components.<\/p>\n\n\n\n<p>The move could also reduce India&#8217;s dependence on foreign markets, especially China, for imported components and raw materials.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>India is considering imposing customs duties on telecom components in a phased manner. What is the proposal? The intention is to boost the domestic supply chain and simultaneously transform the country into a global telecom gear manufacturing hub. The proposal, currently under examination by the Department of Telecommunications (DoT), suggests an initial 10 per cent [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":1273633,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[676,195],"class_list":["post-1273617","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-make-in-india","tag-telecom"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Govt Can Impose Graded Customs Duty On Telecom Components For Boosting Make In India Manufacturing - Trak.in - Indian Business of Tech, Mobile &amp; Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/govt-can-impose-graded-customs-duty-on-telecom-components-for-boosting-make-in-india-manufacturing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Govt Can Impose Graded Customs Duty On Telecom Components For Boosting Make In India Manufacturing - Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"og:description\" content=\"India is considering imposing customs duties on telecom components in a phased manner. 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