A day before the budget, the government has taken a big decision and made smartphones cheaper. According to a notification of the Finance Ministry, the Center has reduced the import duty for components used in the manufacturing of mobile phones from 15 percent to 10 percent. If experts are to be believed, after the cut in import duty, foreign smartphones will become cheaper in the country. According to the notification, import duty on mobile phone parts like back cover, battery cover, GSM antenna, main camera lens and other mechanical items made of plastic and metals has been reduced by 5 to 10 percent.
reduction in these also
Apart from this, it has been said in the notification that the import duty on the inputs used in the manufacturing of these components has been reduced to zero. Giving information to Reuters, Rajat Mohan, director of tax consultancy firm Moore Singhi, said that the reduction in duty on import of mobile phone parts will help big global makers to set up large-scale mobile assembly lines in India and increase the production of mobile phones. There will be a significant increase in exports. Earlier this month, Reuters reported that India was considering cutting import duties on key components for the production of high-end mobile phones.
ICEA had estimated
India Cellular and Electronics Association (ICEA) said in a statement that this step will make India’s mobile phone manufacturing more competitive. Companies in this sector are emphasizing on cutting down about a dozen components to reduce the cost of making smartphones in India and to compete with countries like China and Vietnam. ICEA had earlier said that if the government reduces import duty on components and completely eliminates them in some categories, then mobile phone exports from India could increase three times to $ 39 billion in the next two years, which is the highest in the financial year. It was 11 billion dollars in 2023.
How big will the industry be?
The Indian mobile industry is expected to manufacture mobile phones worth about $50 billion in FY 2024, which is likely to increase to $55-60 billion in the next financial year. Exports are likely to increase to approximately $15 billion in fiscal year 2024 and then to $27 billion in fiscal year 2025. Experts say that the country’s mobile phone industry is going to move forward in the coming days. Apple’s business is continuously growing. Foxconn is continuously investing in setting up its manufacturing units.
