Centre slashes import duty on mobile phone components from 15% to 10%.
In a move aimed at enhancing exports, the Ministry of Finance announced a reduction in import duties on various components used in mobile phone manufacturing, lowering it to 10% from the previous 15%. The revised duty covers a range of components such as battery covers, main lens, GSM Antenna, SIM socket, screws, and back covers, among others. The decision comes ahead of the Interim Budget 2024 announcement, following industry demands to reduce costs and compete effectively with countries like China and Vietnam.
According to the India Cellular and Electronics Association (ICEA), current import duties on mobile phone components in India vary from 2.5% to 20%, making it one of the highest among comparable manufacturing nations. With mobile phone exports from India showing significant growth, doubling to US$ 11.1 billion in 2022-23 and expected to rise further to US$ 15 billion in 2023-24, the move is crucial for sustaining this momentum. Major players in India's mobile phone export market include Samsung, Xiaomi, and Apple, which may expand its manufacturing operations beyond iPhones to include iPads and AirPods in India.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.