Indian PCB makers reported seeking a 45-50% price hike and duty exemptions for key imported components due to unsustainable production costs

The West Asia conflict has started showing its effect in India as prices for various commodities have increased. Well, the electronics prices may also see the impact soon, as according to  The Economic Times, Indian PCB makers are seeking a 40-50% price hike and duty exemptions for key imported components, citing unsustainable production costs as the Iran war has crushed supply chains.

Indian PCB makers seek 45-50% price and duty exemption for key imported components

As reported, the Indian Printed Circuit Association (IPCA) warned stakeholders in a letter that localisation in the $7.27-billion domestic PCB market will be frozen if manufacturers are forced to continue absorbing losses, unless original equipment manufacturers (OEMs) and electronic manufacturing services (EMS) push for a minimum 45-50% upward revision in prices.

If the PCB (Printed Circuit Boards) prices rise, it may affect the overall electronics prices. It is revealed that due to the war in Iran, there is a stress on the supply chain, resulting in a 40-50% rise in Air freight costs owing to rising jet fuel costs, while delivery lead times extended to 20 weeks (up from 4 weeks) for copper-clad laminates (CCL). Input prices for essential chemical and metal materials have also surged by up to 150% over the last six months.

Following the drone strikes in March 2026, Saudi Arabia’s Jubail petrochemical complex shut down. The Jubail petrochemical complex supplied 70% of the world’s high-purity polyphenylene ether (PPE) resin. Shortage of glass fibre and copper foil has also emerged, resulting in diversion from standard electronics towards high-end PCB manufacturing for AI servers and 6G telecom gear.

Jasbir Sing Gujral, managing director of electronics manufacturing services (EMS) company Syrma SGS, has also stated that the demands for a price rise are genuine since the US dollar has appreciated, and metal prices have gone up. He has pointed out that since the global scenario is challenging, PCB supplies should continue to be sourced from China.

Reportedly, IPCA may write to the ministries of commerce and industry, electronics and information technology, seeking further restrictions on PCB imports and over alleged bypassing of the 30% anti-dumping duty on PCBs imported from China and Hong Kong. Duty exemptions or reductions on imported input materials will also be requested.

It is said that the MeitY is monitoring the supply chain disruptions and is providing inputs to the commerce department. According to IPCA, investment proposals received under the ongoing electronic component manufacturing scheme (ECMS) will meet 100% of India’s domestic demands for copper-clad laminates and 50% demand for PCBs going forward.