As per the estimates of the ministry of Commerce, India’s electronics imports rose by 26% in the month of January and reached Rs 26,757.59 crore and the exports fell by 10% reaching Rs 3,162.73 crore.
The electronics imports were at Rs 21,220 crore and exports were at Rs 3,526.13 in January 2016. The imports saw a sharp rise because the Indian electronic manufacture is happening with low-value addition.
“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. To capitalize on demand, we feel that large number of imports of PoS machine may have added to the import. Government needs to focus on increasing value addition to curb imports,” told Rajoo Goel, general secretary, ELCINA (Electronic Industries Association of India)
The Indian Cellular Association (ICA) representative talked about manufacturing happening locally but the lack of value addition in the local manufacture which needs to be pushed by the center.
“We are on track to meet mobile phone production in the country as per commitment. In 201 617, total value of mobile phone to be produced in India is likely to reach Rs 90,000 crore from Rs 54,000 crore in 201516. However, to curb imports, government needs to stick to its commitment of phased manufacturing programme which will lead to increase in local value addition,” said Pankaj Mohindroo, ICA National President.
Source: Importexportmarketing.in
