New Delhi, Jan 30 (IANS) The increase in the duty drawback cap per unit for mobile phones from Rs 197 to Rs 350 will help boost exports from India, electronics industry body India Cellular and Electronics Association (ICEA) said on Thursday.
The duty drawback rate for mobile phones is fixed at 4 per cent with a cap per unit of Rs 350, according to a notification from the Department of Revenue on Tuesday.
“The increase in the duty drawback cap has helped make exports more competitive. The all industry rate (AIR) of 4 per cent with a cap of Rs 350 is yet another step forward to build India as a global mobile phone manufacturing destination,” ICEA Chairman Pankaj Mohindroo said in a statement.
The National Policy on Electronics (NPE) 2019 has a target of exports of 600 million units valued at $110 billion for 2025-26.
The new incentive will assist in meeting the NPE, 2019 export targets, ICEA said.
The global mobile phone market was about $495 billion (Rs 35.3 lakh crore) in 2018-19, which is projected to touch $648 billion (Rs 46.2 lakh crore) by 2025, according to the industry body.
China and Vietnam together accounted for about two-thirds of global exports of mobile handsets in 2018-19, with China alone accounting for more than half of world exports of these products.
Both these countries provide their mobile phone industry several monetary, fiscal incentives and state support.