Government Slashes Import Duty On Smartphone Components To 10 Percent

In an exciting development, the Indian government has decided to reduce import taxes on several components used in the manufacturing of smartphones. Initially, import duties were 15 percent. But today, the center has reduced it to 10 percent. This will benefit brands manufacturing their units in the country, including India, and bring more opportunities and developments in the future.

Import duty reduction applies to the following components

According to an Economic Times report, import duties have been reduced on components such as battery covers, front covers, center covers, primary camera lenses, rear covers, antennas and other polyethylene items like sealing casings etc. Crucially, companies will now have to pay less import duties on several imported metal and plastic components, which should lead to lower manufacturing costs.

Indian smartphone production doubles in fiscal 2023

The move was taken after the Indian Cellular and Electronics Industry Association suggested that import duty cuts could benefit global brands and incentivize them to manufacture in India, which, in turn, could increase production nationally by 28 percent, to reach $82 billion. The move comes at a time when big players like Apple are moving away from manufacturing their phones and other products in China and toward alternatives like Vietnam and India.

More recently, the number of iPhones manufactured in India reached seven percent. In the near future, Apple will be able to move more assembly lines into the country. Lower import duties will make product assembly more efficient and encourage manufacturers to produce products domestically and export them to other regions. Last year, Indian smartphone exports doubled to $11 billion.

However, the Global Trade Research Initiative presented the other side. In its report, the organization suggested that the government maintain import duties on components used in the manufacture of smartphones, as the current structure has proven successful. Additionally, the organization also mentioned how reduced rates could harm local manufacturing, which at first glance appears to refer to the manufacturing queues set up by local companies.

You can follow Smartprix on Twitter, Facebook, Instagram and Google News. Visit smartprix.com for the latest news, reviews and technical guides.