India removed duties on components and devices for point-of-sale machines, biometric readers and iris scanners to encourage local production of point-of-sale devices and encourage digital payments.
“To promote cashless transactions, I propose to exempt BCD (basic customs duty), excise duty, CVD (countervailing duty), SAD (special additional duty) on miniaturized card readers and mPOS micro ATM standards for version 1.5.1, fingerprint readers, scanners and iris scanners,” Jaitley said in his budget speech. “At the same time, I propose to exempt parts… components for the manufacture of such a device to encourage domestic manufacture of such items,” Jaitley said.
The finance minister said India is building an ecosystem to make the country a global hub for electronics manufacturing.
“Over 250 investment proposals for electronics manufacturing have been received over the past 2 years, totaling an investment of Rs 1.26 lakh crores. A number of global leaders and mobile phone manufacturers have put in place place generation facilities in India. So I exponentially increased the allocation for incentive schemes like M-SIPS and EDF to Rs 745 crore in 2017-18. This is an all time high,” a- he declared.
At the same time, he raised tariffs from zero to 2% on populated printed circuit boards (PCBs) used in the manufacture of cellphones to encourage local production.