Sri Lanka Customs officers at the Katunayake Airport (BIA) have arrested nine (09) Chinese nationals on suspicion of arriving in the country to commit computer‑related financial crimes.

The group was stopped at the Green Channel after having arrived from Kunming, China, on Wednesday (15).

Customs officials discovered a concealed stock of electronic communication devices valued at Rs. 24 million, hidden with cellotape on their bodies and within their clothing.

The seized items included 383 used mobile phones worth Rs. 17.5 million, 101 tablet computers valued at Rs. 6.47 million, and six WiFi routers with GPS trackers estimated to be Rs. 30,000. 

Sri Lanka Customs has ordered the forfeiture of the goods, citing violations of import regulations. (Newswire)

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India is set to advance into the second phase of its electronics manufacturing journey, known as Electronics Manufacturing Services (EMS) 2.0, which will focus on the actual manufacturing of electronic components, according to a report by Phillip Capital.

In contrast, the first phase, EMS 1.0, was primarily centered on assembling electronic components.

The report highlighted that the government is working on introducing a new Production Linked Incentive (PLI) scheme for electronic components. This scheme aims to achieve value addition of 35-40 per cent, doubling the current levels of 18-20 per cent achieved under the ongoing electronics manufacturing incentive programs.

The report said, “In the first phase of India’s electronics manufacturing push, or EMS 1.0, is mainly for assembling electronic components, while the second phase, or EMS 2.0, will mainly deal with the actual manufacturing of electronic components.”

Once implemented, the new PLI scheme is expected to drive long-term value addition, making India a more competitive destination for electronics manufacturing. This shift will emphasize locally sourced components, reducing dependence on costly imports, which are often impacted by tariffs and other challenges.

The report further pointed out that while India has made significant progress in electronics assembly, particularly in the mobile and consumer electronics segments, it continues to rely heavily on imports for component manufacturing and design. So EMS 2.0 to focus on that segment.

Despite excelling in final assembly and sub-assembly processes, the country’s limited capabilities in component production remain a challenge.

To address this gap, the government had previously introduced the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), offering a 25 per cent upfront capex incentive to boost investment in electronic components.

However, both the PLI for Large-Scale Electronics Manufacturing (set to conclude in FY26) and the SPECS scheme are nearing their deadlines.

With these initiatives concluding soon, the time is ripe for a new subsidy scheme dedicated to electronic components. Such a scheme is seen as a crucial step to transition from EMS 1.0, focused on assembly, to EMS 2.0, which emphasizes component manufacturing.

This progression aligns with India’s vision of becoming a global hub for electronics manufacturing. (ANI)

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INDIA’S government is considering fresh subsidies for electronic component-makers and cutting tariffs on imports to help boost local manufacturing, especially of smartphones made by companies such as Apple.

The Ministry of Electronics and IT proposed giving manufacturers of components such as batteries and camera parts at least 230 billion rupees (S$3.7 billion) in support, according to sources familiar with the matter, who asked not to be identified as the discussions are private.

The ministry also recommended reducing tariffs on some electronic components, an industry demand that will help bring down production costs, one of the sources said.

A final decision on the proposals will be made by the Cabinet, and if approved, details may be announced in the government’s upcoming budget in February, the sources said.

India’s Ministry of Electronics and IT and Finance Ministry did not immediately respond to requests for further information. The Economic Times of India earlier reported on the subsidy plan.

Prime Minister Narendra Modi’s government has spent billions of US dollars in incentives to lure companies such as Apple and Samsung Electronics to set up manufacturing plants in the South Asian country. Apple’s iPhone exports from India have grown at a rapid clip as a result.

Authorities now want to build on that momentum by creating a broader supply chain for smartphone makers, who import the bulk of their electronics parts from countries including China.

Some of the components being targeted by the proposed subsidy include microprocessors, memory, storage, multi-layered printed circuit boards, camera components such as lens, and lithium-ion cells, one of the sources said. The subsidies are likely to differ depending on the component, another source said.

Government think-tank Niti Aayog said in a report last year that the government should rationalise its tariffs and provide fiscal incentives to bolster electronic components production in India. The South Asian country faces tough competition from rivals such as Vietnam in luring foreign businesses looking to diversify their supply chains from China.

India’s current tariffs on electronics components – ranging from 0 to 20 per cent – is about 5 to 6 per cent higher than countries such as China and Malaysia, according to research from Niti Aayog. (Bloomberg) 

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