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Closer scrutiny of Chinese imports to delay electronics’ production in India

Delay in access to electronics and allied component from China due to closer inspection by customs officials in India would mean drying up of product inventory and a possibility of further price increase in appliances.

June 26, 2020 / 02:49 PM IST

After the India-China stand-off at Galwan Valley resulted in the killing of 20 Indian soldiers on June 18, the customs department is closely scrutinising all imports to Mumbai and Chennai. With this, electronics makers relying on imports of finished products and components from China are expecting production delays, with threats of slipping into a ‘red zone’ looming large.

This could see electronics inventory levels drying up over the next month. Sources told Moneycontrol that the inventory levels of several smartphone and television brands may last only for less than a month.

Appliance makers told Moneycontrol that even though there is no central government order, the customs department has been thoroughly inspecting finished electronics products and components from China since June 21. Earlier, only suspected packages from countries like China were held back by the customs department.

“There is a delay in getting components and crucial parts into factories since the consignments are stuck at ports and airports. Though from June 25, the situation has seen a partial improvement, the delay will continue,” said the chief executive of an appliance maker.