HIGHLIGHTS
- The Indian government has announced its Budget 2025.
- It has announced exemptions on many smartphone-related parts.
- This can have a positive effect on the overall manufacturing sector.
Union Finance Minister Nirmala Sitharaman recently announced the Indian Government’s 2025 Budget overview in a parliament session. The budget includes many changes in the existing tax regime and also announces tax exemption on several components needed for manufacturing a smartphone.
Which devices or components to get cheaper following the Budget 2025?
Before anything, the Government of India has announced zero Basic Custom Duty (BCD) on numerous electronic parts such as PCBA (printed circuit board assembly), camera modules, charging cables, fingerprint sensors etc. This will boost the local manufacturing sector and can have some positive influence on device pricing.
Another thing that the government announced was a reduction in BCD for selected components that are needed for making LCD and LED TVs. This will lower the total manufacturing cost for the brands.
The government has also added 28 selected capital goods that are responsible for manufacturing batteries used in smartphones and EVs to the list of items exempted from customs duty. To summarize, we can expect the new budget to be beneficial for the consumers and manufacturers of EVs and smartphones.
