HIGHLIGHTS
- The Indian Government reduced the Import duty on smartphone parts to 10 percent.
- Input or parts for use in manufacture of goods reduced to Zero percent.
- According to ICEA, India has potential to increase smartphone exports from 11$ billion FY23 to $39 billion in the next two years.
The Indian Government reduced the Import duty on smartphone parts and this move will help boost the smartphone manufacturing in India. Along with the “Make in India” initiative this move will also help smartphone OEMs to increase the capacity of smartphone manufacturing in India and those OEMs who don’t have their manufacturing plant in India this move will also attract them to come and set up their manufacturing plants in India. This reduction of smartphone parts comes a day ahead of Union Budget 2024.
Import duty on smartphone parts
Import duty on smartphone parts has been reduced from 15 percent to 10 percent on these parts.
- Battery Cover
- Front Cover
- Middle Cover
- Main lens
- Back cover
- GSM Antenna/ Antenna of any technology
- PU/case/Sealing Gasket – 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
Input or parts for use in manufacture of goods reduced to Zero percent.
Rationalization of customs duties brings much-needed certainty and clarity for the industry. Thanks to Hon’ble PM @narendramodi Ji and FM @nsitharaman Ji for strengthening the mobile phone manufacturing ecosystem through this measure. pic.twitter.com/cwP4MNksy4
— Ashwini Vaishnaw (@AshwiniVaishnaw) January 31, 2024
The relief comes amid the Industry’s longtime demand for lower duties on imports of inputs used in manufacturing of mobile phones. The India Cellular and Electronics Associations (ICEA) had made a suggestion to the government earlier this month to reduce imports on mobile phone components to zero. This includes part of PCBA, camera module and connectors.
“This is a critical and welcome policy intervention by the government towards making mobile manufacturing competitive in India. Building scale and riding on low input tariffs are key to transforming India into a global hub for electronics manufacturing and exports” said by Pankaj Mohindroo, Chairman of ICEA.
According to ICEA, India has the potential to increase smartphone exports to $39 billion over the next two years from $11 billion in FY23. It’s suggested that this would happen as a result of reduced import tariffs on components and zero for some of them. It would also help India to compete against the top exporters China and Vietnam.
