NEW DELHI, Jan 31: In a strategic move aimed at bolstering the domestic mobile phone manufacturing sector, the Indian government has announced a significant reduction in import duties on various components used in the production of mobile phones.
The finance ministry’s notification reveals a cut in import duty from 15% to 10% on essential components, marking a positive development for the industry.
The impacted components include crucial elements such as back covers, battery covers, GSM antennas, main camera lenses, and other mechanical items made of plastic and metal. Import duty on these items has now been lowered to 10%, as outlined in the official communication.
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Furthermore, the notification highlights that the import duty on inputs utilized in the manufacturing of these components has been entirely waived, reducing it to zero.
Experts anticipate that these duty cuts will attract major global manufacturers to establish large-scale mobile assembly lines within India, thereby contributing to the growth of the country’s mobile phone manufacturing sector.
Rajat Mohan, a director at the tax consultancy firm MOORE Singhi, emphasized the potential for increased exports of mobile phones resulting from these favorable measures.
“Duty cuts on the 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,” Mohan told Reuters.
The India Cellular and Electronics Association (ICEA) welcomed the government’s decision, noting that it will enhance India’s competitiveness in the global mobile phone manufacturing arena.
“The move aligns with the government’s broader initiatives to boost domestic production, create employment opportunities, and position India as a significant player in the global electronics manufacturing landscape,” it said.
