India Slashes Customs Duty on Mobile Phones and Accessories

Finance Minister Nirmala Sitharaman announced a significant Custom Duty Reduction on mobile phones, mobile PCBAs, and mobile chargers from 20% to 15%. This move aims to further boost the Indian mobile industry, which has seen substantial growth in recent years.

Custom Duty Reduction to give Boost to Domestic Production

Sitharaman highlighted that domestic production of mobile phones has increased threefold, and exports have surged 100-fold over the last six years. This reduction in customs duty is expected to benefit consumers and strengthen the industry’s growth trajectory.

Custom Duty Reduction: Encouraging Domestic Manufacturing

Earlier this month, a Mint report revealed the government’s plan to cut customs duties on consumer electronics to promote domestic manufacturing, reduce import dependence, and enhance value addition in the sector.

Previous Duty Reductions

In January, the Union government reduced import duties on several mobile phone components from 15% to 10%. These components include battery covers, main lenses, back covers, antennas, SIM sockets, and other mechanical parts made of plastic and metal.

Industry Insights

Industry analyst Abhilash Kumar shared his perspective with HT Tech, noting that the sub ₹10,000 segment might see increased activity as affordable 5G chipsets from Qualcomm, MediaTek, and Unisoc become available. He expects minimal impact on the mid-segment and anticipates potential price reductions during festive sales due to financial tie-ups with e-commerce platforms like Flipkart and Amazon.

Conclusion

The reduction in customs duty on mobile phones and accessories is a strategic move to bolster the Indian mobile industry’s growth. With increased domestic production and exports, consumers can expect more affordable mobile devices in the near future