The Indian government has reduced the import duty on mobile phone components from 15% to 10%. This decision impacts a variety of components including battery covers, lenses, antennas, SIM sockets, and various mechanical and plastic items.
The move is aimed at boosting exports from Asia’s third-largest economy and attracting more investment from global smartphone makers such as Apple, Samsung and Xiaomi. India is one of the largest markets for mobile phones in the world, with over 1.2 billion subscribers as of December 2023.
The import duty reduction was announced by the finance ministry through a notification on Tuesday, following reports that India was considering lowering import duties on key components that play a crucial role in the manufacturing of high-end mobile phones.
The components on which the import duty has been cut to 10% include:
- Battery cover
- Front cover
- Middle cover
- Main lens
- Back cover
- GSM Antenna/Antenna of any technology
- PU case/sealing gasket and other articles of polyurethane foam like sealing gaskets/case
- Sealing gaskets/cases from PE, PP, EPS, PC and all other individual polymers or combination/combinations of polymers
- SIM socket
- Screw
- Other mechanical items of plastic
- Other mechanical items of metal
The decision aligns with the government’s vision of making India a global hub for mobile phone manufacturing and exports. India has already attracted several major smartphone makers to set up production units in the country under the Production Linked Incentive (PLI) scheme, which offers incentives for increasing local value addition and creating employment.
According to the India Cellular and Electronics Association (ICEA), the import duty reduction will benefit companies like Apple and other high-end Android phones, as well as bolster India’s export competitiveness in the global market. The ICEA also said that the move will help reduce the cost of making smartphones in India and level up the playing field with regional competitors such as China and Vietnam.
The import duty reduction comes ahead of the Union Budget 2024, which is expected to be presented by Finance Minister Nirmala Sitharaman on February 1. The budget is likely to focus on reviving the economy after the impact of the COVID-19 pandemic and boosting sectors such as infrastructure, healthcare, agriculture and manufacturing.