 "Ahead of Budget 2024, govt slashes import duty on mobile phone parts to 10% from 15%")
Ahead of Union Budget 2024, the Indian government reduced the import duty for components used in the manufacture of mobile phones from 15 per cent to 10 per cent.
According to a report by Reuters, the announcement of reduction in the import duty for components used in the manufacture of mobile phones was made by the Government of India on Tuesday.
The decision aims at boosting exports from Asia’s third-largest economy.
The move will benefit companies like Apple and other high-end Android phones, as well as bolster India’s export.
Components on which import duty has been cut
The components on which the import duty has been cut to 10 per cent includes battery cover, front cover, middle cover, main lens, back cover, GSM Antenna/Antenna of any technology, PU case/sealing gasket and other articles of polyurethane foam like sealing gaskets/case, sealing gaskets/cases from PE, PP, EPS, PC and all other individual polymers or combination/combinations of polymers, SIM socket, screw, other mechanical items of plastic and other mechanical items of metal.
Earlier this month, the news agency quoted two government officials saying India is considering import duty cuts on components key to producing high-end mobile phones.
Mobile manufacturing companies have been pushing for cuts on nearly a dozen components to reduce the cost of making smartphones in India as well as level up the playing field with regional competitors including China and Vietnam.
Till now, import duties on the mobile phone components, such as camera modules and chargers, where the industry was seeking cuts, ranged from 2.5 per cent to 20 per cent, the report had quoted India Cellular and Electronics Association (ICEA) as saying.
Quick Reads
View AllMobile phone exporters in India, other than Apple, include South Korea’s Samsung (005930.KS) and China-based Xiaomi (1810.HK).
Apple iPhones are currently assembled in India but the iPhone manufacturer is looking to expand into iPad and AirPods production too in part to diversify its manufacturing away from China.
In Budget 2023-24, Finance Minister Nirmala Sitharaman eliminated a 2.5 per cent customs duty on select parts of mobile camera phones to try to increase the number of high-end mobile phones assembled in India.
With inputs from Reuters
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