Cheaper Phones? Govt Slashes Import Duty On Mobile Phone Parts Ahead Of Interim Budget 2024

While the countdown for Interim Budget 2024 has already begun, here¡¯s a bit of good news that might make consumers happy. As per a recent notification issued on Jan 30, the government of India has slashed import duty from 15 percent to 10 percent for components used in manufacture of mobile phones.

Which Mobile Phone Components Are Likely To Get Cheaper?

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These components reportedly include battery enclosures, primary lenses, SIM pocket, rear covers, and various mechanical components made from a combination of plastic and metal.

However, the notification doesn¡¯t specify a date for implementing lower duty. This reduction is bound to have a beneficial influence on the mobile phone sector and market competitiveness.

This will further help in reducing the cost of making smartphones in India providing a level playing field with competitors like China and Vietnam.

Prime Minister Narendra Modi Calls India A Smartphone Manufacturing Hub

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In recent years, PM Narendra Modi has promoted India as a smartphone manufacturing hub which has opened doors for brands like Apple, Xiaomi, Samsung and Vivo to expand assembly of phones.

The import duties on mobile phone parts were the highest in India as compared to other manufacturing nations like China, Vietnam, Mexico and Thailand, which pushed the industries to seek tax reductions.

This move will make India¡¯s mobile phone manufacturing more competitive, the India Cellular and Electronics Association (ICEA) said in a statement.

With global mobile companies manufacturing in India, mobile phone exports from the country doubled year-on-year to $11.1 billion (over Rs 92000 crore approx) in the fiscal year to March 2023. It is expected to touch the $15 billion mark in the current fiscal year, as per industry trends.

What Is Import Duty?

Import duty is a tax levied on imports and some exports by a country's customs authorities. A good's value usually dictates the import duty. Import duty may also be known as a customs duty, import tax or import tariff.