Smartphone production likely to be suspended due to new import policy

Smartphone makers in India may have to suspend production due to a recent change in the country’s import policy, which is now forcing them to obtain licences before importing certain components that are crucial to handset manufacturing.

Customs have reportedly held up shipments of components such as flat panel displays and camera modules for smartphones.

Smartphone manufacturers are now bracing for the impact at a time when they have just started to emerge from the global supply chain-related challenges and several lockdown-included restrictions since 2020.

Manufacturers stated that the change in the import policy was issued without any prior warning or consultation.

The India Cellular and Electronics Association (ICEA), which represents top smartphone makers and contract manufacturers, in a letter to MeitY said the industry cannot afford such a disruption as there is a big amount of production and the exports playing a key role in the economy.

“India is the world’s second largest producer of mobile phones. Thanks to the PLI scheme, exports have started to pick up and have already touched $3.34 billion in this year,” Pankaj Mohindroo, chairman, ICEA said in the letter to the MeitY secretary.

“We are on an ambitious journey to build $300 billion electronics manufacturing with an export contribution of $120 Billion by 2025-26. Stability and predictability of the policy regime is very important to achieve this vision,” Mohindroo added.

“This would disrupt the business and would be detrimental to the consumers/customers,” Mohindroo said. Disruptive.Asia