Indian government reduces import duty on mobile parts, potentially leading to lower smartphone prices and boosting domestic manufacturing.
In a bid to bolster domestic manufacturing and support the ‘Make In India’ initiative, the Indian government has reduced import duties on key mobile phone parts. This move is expected to encourage smartphone brands to invest more in local production, potentially leading to lower smartphone prices for consumers.
Reduction in Smartphone’s Import Duty
The import duty on crucial mobile phone components has been decreased from 15 percent to 10 percent. This includes various parts such as the battery cover, front cover, main lens, and more. Additionally, the import duty on inputs used to manufacture these components has been reduced to zero.
The reduction in import duties aligns with longstanding industry demands, particularly from the India Cellular and Electronics Association (ICEA), which had urged for lower tariffs on mobile phone components. Pankaj Mohindroo, Chairman of ICEA, hailed the government’s decision as a crucial step towards enhancing India’s competitiveness in electronics manufacturing.
Potential Growth in Smartphone Exports
According to ICEA projections, India has the potential to significantly increase mobile phone exports in the coming years, reaching up to $39 billion by FY25. This growth is expected to be fueled by reduced import tariffs on components, positioning India as a formidable competitor to top exporters like China and Vietnam.
The government’s move to lower import duties on mobile parts is poised to stimulate local manufacturing, drive export growth, and potentially translate into more affordable smartphones for Indian consumers.
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