The government has removed import duties on some components for the production of mobile phones, Finance Minister Nirmala Sitarman on Saturday announced the benefit of local production efforts and firms like Apple and Shiaomi in the annual budget.
India’s electronics production has exceeded double in the last six years, which has increased to $ 115 billion (about Rs 99,41,100 crore) in 2024, the country has now become the second largest mobile phone manufacturer in the world.
According to the research firm Counterpoint, Apple led the India’s smartphone market with a 23% stake in total revenue during 2024.
The list consisted of components for mobile phone assembly such as printed circuit board assembly, parts of the camera module and USB cables, which were imposed 2.5% earlier.
The dangers of US President Donald Trump’s tariffs will help India better cope with a possible disruptive year of global trade.
As Trump expected to bring back more manufacturing units in the US, he has expected to take advantage of American-China business stress to increase its share of global supply chains, to bring back more manufacturing units in the US. Used to be.
Internal, India’s IT Ministry warned of the risk of losing to China and Vietnam in the smartphone export race, if it was not to reduce tariffs to woo global companies, the Reuters stated last year.
In his budget last year, Sitarman announced a review of the country’s customs duty rate structure to rationalize and simplify the tariffs for ease of trade.
The purpose of the duty review is aimed at removing the so -called reverse duty structures or examples, where tariffs on raw materials or intermediate goods are more than the final products that they are used to produce.
India’s complex tariff structure is often quoted as a preventive for efficient local production and disputes.
Counterpoint Research Director Tarun Pathak told Gadgets 360, “The Union Budget 2025 brings good news for the industry, including consumer electronics manufacturing sector. New cuts on BCD for important components means localization of parts like batteries and displays Will grow. “
“The amendment of the government of the basic customs duty (BCD) will increase the domestic manufacturing, making us the ambitious $ 500 billion (about Rs. 43,32,500 crore) of Prime Minister Narendra Modi to reach the electronics manufacturing target. 10 percent to 20 percent, Combined with a 5 percent decrease in open cells and other LCD/LED components, an forward thinking policy is that will give a significant boost to a domestic manufacturing champion like Dixon, “Prabhu Ram, VP said. Industry Research Group (IRG), Cybermedia Research.
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