In a move aimed at bolstering the
mobile phone manufacturing sector
in India, the government has slashed the
import duty
on certain components used in the production of smartphones. The finance ministry said in a notification on Tuesday (January 30) that the import duty on some items crucial for mobile phone assembly has been reduced from 15% to 10%.
Furthermore, the import duty on inputs utilised to manufacture these components has been cut to zero, news agency Reuters cited the notification as saying.
Parts on which import duty is waived
The components on which the import duty has been reduced include battery covers, main camera lenses, back covers, as well as other mechanical components made of plastic and metal, GSM antennas, and various other parts.
What is means for ‘Made in India’ initiative
This decision is likely to benefit major players like Apple and Xiaomi, both of which have significant manufacturing operations in the country. Prime Minister Narendra Modi's push to position India as a prominent smartphone manufacturing hub has already attracted investments from global giants such as Samsung, Vivo, and Xiaomi.
Despite these efforts, the high import duties on mobile phone parts remained a concern, with India having the highest duties among six comparable manufacturing nations, including China, Vietnam, Mexico and Thailand.
A previous report by the news agency hinted at India's contemplation of duty cuts on some components for assembling high-end mobile phones in the country.
On the development, the India Cellular and Electronics Association (ICEA) said that the move would render India's mobile phone manufacturing landscape more competitive.
It has been reported that the surge in mobile companies manufacturing in India has already worked in the country’s favour, with mobile phone exports from the country doubling year-on-year to $11.1 billion in the fiscal year ending March 2023. As per industry estimates, this figure is expected to further rise to $15 billion in the current fiscal year, underscoring the growing significance of India's role in the global mobile phone market.
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