Header Banner

Mobile phones can become cheaper, government reduced import duty on mobile parts

Vipin PicVipin - February 01, 2024 12:52 PM

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

mobile

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.

Also Read: Will Saurabh Kumar be able to replace Jadeja?

About the Author:

Vipin Kumar Writter

Vipin Kumar

I am a dedicated and results-oriented Sports Content Writer with over 3 years of experience in crafting engaging, SEO-driven, and reader-focused content for leading sports platforms. At Possible11 Sports, I specialize in fantasy sports analysis, match previews, player insights, and trend-based storytelling, helping fans make informed decisions while enhancing their overall sports experience.

Armed with a Bachelor’s Degree in English (Agra University) and a PG Diploma in Journalism & Mass Communication (Amity University, Noida), I bring a strong foundation in writing, research, and communication. My early industry exposure through an internship with a reputed sports organization further sharpened my understanding of sports journalism, editorial standards, and digital content strategies.

Combining academic excellence with practical expertise, I excel at producing high-quality, impactful sports content that not only informs but also captivates audiences, drives engagement, and strengthens brand credibility. My passion for sports, attention to detail, and ability to simplify complex analysis into engaging narratives set me apart as a trusted voice in the sports writing domain.

More Articles from Vipin