January 31, 2024Anmol Nagpal

Centre lowers import duty on mobile phone parts to 10%

Centre has slashed import duty for components used in the manufacture of mobile phones to 10 per cent from 15 per cent earlier.

Source: Pexels

These components include battery enclosures, primary lenses, rear covers, and various mechanical components made from a combination of plastic and metal, SIM socket.

Source: Samsung

The latest reduction is expected to benefit the sector in terms of manufacturing as well as exports.

Source: Instagram

Firms in the industry have been advocating for duty cuts on approximately 12 components to lower the production costs of smartphones in India.

Source: Samsung Phones website

Moreover to create a more competitive environment against neighboring rivals like China and Vietnam.

Source: Unsplash

The GTRI had urged the government to not cut import duties on electronic components used in making smartphones as any changes to the existing tariff structure could hurt local manufacturing.

Source: Pexels

The ICEA had batted for import duty cuts on mobile phone components to help increase domestic production of handsets, boost exports, and support indigenous manufacturing.

Source: Unsplash

Exports of Indian smartphones increased to $13.9 billion in 2023 from $7.2 billion in 2022.

Source: Shutterstock

The sector is also one of the top performers for the flagship PLI scheme and over 98 percent of smartphones sold in India are made locally, the GTRI report added.

Source: Shutterstock