Import duty on phone components lowered from 15% to 10%
What's the story
Indian government has slashed import duties on mobile phone components from 15% to 10%.
These components include battery enclosures, primary lenses, rear covers, and various mechanical components made from a combination of plastic and metal.
This decision is expected to boost the local mobile phone industry and may even nudge companies to slash the prices of their products in the country.
Lower tax to enhance exports
Lower import duty aimed at boosting phone production, export prospects
Companies like Apple and Samsung are expected to benefit from this move, which could also enhance India's export prospects.
Industry firms have been pushing for duty cuts on around 12 components to lower smartphone production costs in India and create a more competitive environment against China and Vietnam.
The Indian Cellular and Electronics Association (ICEA) had stated earlier that phone exports could triple to $39 billion from $11 billion over next two years, if the government reduces tariffs.
Boost to local production
India to produce $50 billion worth of phones in FY24
In the fiscal 2023-24 budget, Finance Minister Nirmala Sitharaman eliminated a 2.5% customs duty on specific mobile camera phone components to encourage the production of high-end mobile phones in India.
This latest import duty reduction aligns with the government's efforts to promote domestic manufacturing and improve India's standing in the global mobile phone market.
In FY24, the Indian mobile industry is expected to manufacture $50 billion worth of mobile phones.