Post Budget Reaction Mr. Kuldeep Malik, Country Head – Corporate Sales International, MediaTek India

Country-Head-Corporate-Sales-International-MediaTek-India-Kuldeep-MalikWe were expecting Financial Budget 2017 to offer incentives to start inflow towards design led manufacturing in place of assembly led manufacturing ecosystem, but it seems government not yet convinced towards adopting multiple layered incentives for localization while increasing the duties on CBU (Completely built Units), overall based on the information available from the budget the impact of the policies seems to be neutral for mobile/tablet industry, at best.

There has been a 2% increase in duties levied on import of PCBA in India, which still will reflect only on one part of the manufacturing cycle with focus on assembly of mobile handsets. On the other hand, providing attractive incentives for localization of design and R&D capabilities would have bolstered the ‘Make in India’ initiative, and driven more handset makers to introduce design led manufacturing in India.

Post demonetization government seems to be totally convinced towards digital payment adoption, and there is one key development towards ‘Digital India’ program, where Government has decided to waive all duties (SAD/CVD, BCD) levied on mPOS systems, which in turn means that the POS devices will become cheaper and hence we can expect the adoption of such devices, even in grass root level, to grow exponentially in the coming year, helping drive forward the mobile payments ecosystem.” Considering the adoption of Aadhar based payment government has also waived of duties from components such as IRIS scanner, fingerprint readers.

@Technuter.com News Service

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