Aversion To Chinese Imports Impacted Mobile Industry

The immediate aversion to import Chinese products and the government’s proactive steps to lower dependence on imports badly affected the growing mobile and electronics industry.

In a letter to Finance Minister Nirmala Sitharaman, the Indian Cellular and Electronics Association (ICEA) has said that all China-origin imports of the electronics industry have come under adverse action by customs at the ports without prior warning, which has impacted the supply chain.

“There was a refusal to clear followed by delays, and now, talk about 100 per cent examination. The logistics of seamless movement is in total disarray,” wrote Pankaj Mohindroo, Chairman of ICEA.

He noted that essential parts, components and accessories required for manufacture in the 200 plus factories which came up following the adoption of ‘Make in India’, ‘Digital India’ and ‘Phased Manufacturing Programme’ (PMP) in the mobile industry has been impacted.

The industry body raised concerns in the letter to the FM that if the supply chain is broken then there will be a severe shortage of essential communication, equipment required for health, work-from-home and online education goods such as smartphones, tablets and laptops since alternative supplies are not available in the local and global markets amidst the COVID-19 outbreak.

Woman using iPad

He noted that these goods are contributing valuable customs duty and IGST to the Central and State exchequers.

Mohindroo mentioned that companies have received word from Chennai, Mumbai and Delhi airports about the new examination procedure for all China origin consignments of being subject to 100 per cent examination and urged the minister that the 100 per cent examination of only China origin goods be stopped so that the supply chain moves without hurdles.

“There are enough checks on inputs in the system, there is little likelihood of any danger from China origin imports. Of course, dumping actions have to be checked, this is best done by law,” he said.