Import of electronics in the country increased by 26 percent to Rs 267.57 billion in January and exports reduced by 10 percent to Rs 31.62 billion, as per Commerce Ministry estimates.
Electronics imports stood at Rs 212.2 billion in the same month a year ago and exports were at Rs 35.26 billion the estimates said. Industry players attributed the surge in imports to low value addition in electronics manufacturing, quick surge in demand for point of sales and related products.
According to PTI, ELCINA Electronic Industries Association of India Secretary General Rajoo Goel said that the value addition in good manufactured in India is low and even manufacturing is not at the scale to meet local demand. The demand for products like mobile phones, telecom equipment have been rising but most of the parts used in them are imported which we see among reason for rise in imports
He said that recent push for digital transactions has led to demand in point of sales machines and related devices like fingerprint reader, biometrics scanner where there is duty arbitrage between domestic production and imports.
Indian Cellular Association said that mobile phone manufacturing is in track to meet committed numbers but value addition in domestically made mobile phones need to be encouraged and the government has to implement measures to boost exports.
