Mobile Phone Components Import Duty Cut to 10% from 15% Ahead Budget 2024

Centre has slashed the import duty on the components used in mobile phone manufacturing. It will include the components made from a mixture of plastic and metal. As per the announcement made on Monday, 30 January 2024, the import duty has been cut down to 10% from 15%. Many are favoring the reduction while others seem to be against it. We will share details about the changes made in the import duty below.

Mobile Phone Components Import Duty Cut to 10% from 15% Ahead Budget 2024

Impact of Import Duty Cut on Mobile Phone Components

The recent government notification states that the mobile phone manufacturing components will have an import duty of 10% rather than 15%. The matter was going on for a long time in discussions. At the beginning of the month, there were discussions about the reduction in import duty on sim slots, battery enclosures, and primary lenses as well.

The discussion has been going on so that the manufacturing of premium smartphones in the country becomes more accessible and affordable. As per GTRI (Global Trade Research Initiative), the import duty should not be reduced. The reduction will impact local manufacturing. The Think Tank further suggests that the government should keep the import duty percentage unchanged to improve India’s smartphone production. Only exports should be exempted.

The government wants to boost the production process to give competition to China and Vietnam’s smartphone industry. They are the leaders at the current moment. Apart from that, India’s Cellular and Electronic Association believes in the reduction in import duty. According to them, the companies will be able to grow with the help of reduced import duties.

The current budget also has reduced the custom duty on some components of mobile phone manufacturing. Import and export duty often plays a crucial role in economic growth. The government often changes the import and export duty rates as per their preference for economic growth.

The center has recently led to a reduction in the import duty to 10%. Many of the organizations and manufacturers are happy with the decision. There were already high demands for the reduction. The current scenario is favorable for importing mobile phone components at cheaper rates. The only concern is the impact on local manufacturing. The final result will be known after the implementation. We will update you with more details after the release of the budget tomorrow. We hope you get enough details about the reduction of import duty as well.

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