Last Updated: January 31, 2024, 15:23 IST
Budget telephones might get cheaper in India
India has reduce the import obligation on some components utilized in making cell phones to 10% from 15% however will that carry the costs down?
NEW DELHI:India has reduce the import obligation on some components utilized in making cell phones to 10% from 15%, a transfer benefiting firms like Apple and Xiaomi that manufacture in Asia’s third-largest financial system.
The import obligation on components corresponding to battery covers, primary digicam lenses, again covers, different mechanical gadgets of plastic and metallic, GSM antenna, and different components, has been diminished to 10%, the finance ministry mentioned in a notification late on Tuesday.
The import obligation on inputs used to fabricate these parts has been reduce to zero, the notification mentioned.
Prime Minister Narendra Modi has in recent times promoted India as a smartphone manufacturing hub, prompting firms corresponding to Apple, Xiaomi, Samsung Electronics and Vivo to increase meeting of telephones.
However, duties on cell phone components have been the very best amongst six comparable manufacturing nations, together with China, Vietnam, Mexico, and Thailand, which led the business to push for tax reductions.
“Duty cuts on import of mobile phone parts would help big global manufacturers to set up large scale mobile assembly lines in India, and substantially increase exports of mobile phones,” mentioned Rajat Mohan, a director at tax consultancy agency MOORE Singhi.
Earlier this month, Reuters reported that India was contemplating import obligation cuts on key parts for producing excessive-finish cell phones.
The transfer will make India’s cell phone manufacturing extra aggressive, the India Cellular and Electronics Association (ICEA) mentioned in a press release.
With world cellular firms manufacturing in India, cell phone exports from the nation doubled yr-on-yr to $11.1 billion within the fiscal yr to March 2023 and are anticipated to rise to $15 billion within the present fiscal yr, in accordance with business estimates.
