The import duty has been reduced on various components such as battery covers, primary camera lenses, rear covers, GSM antennas, and other plastic and metal mechanical items.
The Indian government has implemented a reduction in the import duty on certain components used in the production of mobile phones. This move, which lowers the duty from 15 percent to 10 percent, will particularly benefit companies like Apple and Xiaomi, both of which manufacture their products in India.
According to a notification issued by the finance ministry, the import duty on various parts including battery covers, main camera lenses, back covers, plastic and metal mechanical items, GSM antennas, and other components has been decreased to 10 percent. Additionally, the duty on inputs used in the manufacturing of these components has been completely eliminated.
Prime Minister Narendra Modi has been actively promoting India as a major hub for smartphone manufacturing, leading companies such as Apple, Xiaomi, Samsung Electronics, and Vivo to expand their assembly operations within the country.
However, the import duties on mobile phone parts in India were significantly higher compared to other manufacturing nations such as China, Vietnam, Mexico, and Thailand. This discrepancy prompted the industry to advocate for tax reductions.
Rajat Mohan, a director at tax consultancy firm MOORE Singhi, stated that the reduction in import duties on mobile phone parts will facilitate the establishment of large-scale mobile assembly lines in India by global manufacturers. This, in turn, is expected to significantly boost the export of mobile phones from the country.
According to a statement by the India Cellular and Electronics Association (ICEA), the decision will enhance the competitiveness of India’s mobile phone manufacturing sector. With the presence of international mobile companies manufacturing in India, the country witnessed a significant increase in mobile phone exports, reaching $11.1 billion (approximately Rs. 92,174 crore) in the fiscal year ending in March 2023. Industry estimates suggest that this figure is projected to further rise to $15 billion (approximately Rs. 1,24,560 crore) in the current fiscal year.