Phased Manufacturing Programme to promote domestic manufacturing of wearables

New Delhi, Feb 2 (KNN) To promote domestic manufacturing of wearables and hearable devices, the government on Tuesday announced a new phased manufacturing programme (PMP).

Finance Minister Nirmala Sitharaman said the duty on most components for manufacturing wearables and hearable devices will be brought down to nil from 1 April while customs duty on imports of such products will be charged at 15-20% over FY23-26.

While duty on imported smartwatches, bluetooth speakers, true wireless stereos, headphones, earphones, ear buds, neckbands and headsets will be at 20%, duty on import of components will be at 0-15% between FY23 and FY26.

“Customs duty rates are being calibrated to provide a graded rate structure to facilitate domestic manufacturing of wearable devices, hearable devices and electronic smart meters," Sitharaman said in her budget speech.

Customs duty on camera lens for manufacturing camera modules was lowered from 15% to 2.5%, and duty on parts for manufacturing transformer of mobile chargers, such as copper wire-enamelled, insulation tape, ferrite core, triple insulated winding wire, and varnish, was reduced from 10-15% to 5%. gold and aluminium used in printed circuit boards will attract zero duty, compared with 2.5% earlier.

Sitharaman said the changes will enable high growth in domestic manufacturing of electronic items. 

The finance minister also announced a one-year extension to the customs duty exemption given to steel scrap last year, in an effort to provide relief to MSME secondary steel producers. (KNN Bureau)