Mobile phones can become cheaper, government reduced import duty on mobile parts
A day before the presentation of the budget, the central government has reduced the import duty on mobile spare parts from 15% to 10%. This can make mobile phones cheaper. According to the notification issued by the Finance Ministry, the import duty on battery cover, main camera lens, back cover, other mechanical items of plastic and metal, GSM antenna and other parts has been reduced to 10%.
Recently, mobile companies had demanded the government to reduce import duty on 12 spare parts to reduce manufacturing cost. Companies said that if countries like China and Vietnam have to compete in manufacturing, then costs will have to be reduced.
Higher taxes in India than countries like China, Vietnam
According to India Cellular and Electronics Association (ICEA), import duty ranges from 2.5% to 20% on essential components of mobile phones such as camera modules and chargers.
This tax is much higher than leading mobile manufacturing countries like China and Vietnam. ICEA said that unless these taxes are reduced, India's mobile export growth may remain slow.
Smart phone prices will reduce
According to the report of Global Trade Research Initiative, 98% of smartphones sold in India are made in the country itself. The mobile phone sector will benefit from reduced import duty on manufacturing parts. Due to this, the prices of mobile phones in India are also expected to reduce.
Reduction in duty will increase exports
Rajat Mohan, director of tax consultancy firm Moore Singhi, said the duty cut on import of mobile phone parts will help big global manufacturers set up large-scale mobile assembly lines in India. This will increase mobile phone exports.
India's mobile exports doubled
Indian smartphone export was $ 7.2 billion (about Rs 60 thousand crore) in 2022, which will increase to $ 13.9 billion (Rs 1.1 lakh crore) in 2023. Smartphone exports are expected to be more than $15 billion (about Rs 1.2 lakh crore) in 2024.
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Professional Sports Content Writer. A Sport writer with over 3 years of experience having written for several reputed websites. Currently working with Possible11 Sports. Have a Bachelor's Degree in English from Agra University and an Internship Experience with reputed Sport compan to boost my credentials. I also hold PG Diploma in Journalism & Mass Communication from Amity University, Noida.