Government Slashes Import Duty On Smartphone Components To 10 Percent

Main Image
  • Like
  • Comment
  • Share

In an exciting development, the Indian government has decided to reduce import tax on several components used in manufacturing smartphones. Initially, the import duty stood at 15 percent. However, now, the center has decreased it to 10 percent. This will benefit brands manufacturing their units in the country, including India, and bring in more opportunities and developments in the future.

Import Duty Cut Applies On The Following Components

According to a report by the Economic Times, import duty has been decreased on components like battery covers, front covers, middle covers, primary camera lenses, back covers, antennas, and other polyethylene articles like sealing cases, etc. Basically, companies will now have to pay less import duty on several imported components made of metal and plastic, which should result in lower manufacturing costs.

Indian Smartphone Production Doubled In Fiscal Year 2023

The decision came after the India Cellular and Electronics Association suggested that import duty cuts could benefit global brands and make them manufacture in India, which, in turn, can increase domestic production by 28 percent to USD 82 billion. The decision comes at a time when big players like Apple are turning away from manufacturing their phones and other products in China to alternatives like Vietnam and India.

Most recently, the tally of iPhones manufactured in India rose to seven percent. In the near future, Apple can move more assembly lines in the country. Lower import tariffs will make assembling products more effective and encourage manufacturers to make products in the country and export them to other regions. Just last year, India’s smartphone exports doubled to USD 11 billion.

However, the Global Trade Research Initiative presented the other side. In its report, the organization suggested the government retain the import duties on components used in making smartphones as the current structure has proven successful. Further, the organization also mentioned how reduced rates could harm local manufacturing, which, at first glance, appears to be referring to the manufacturing lineups set up by local companies.

You can follow Smartprix on TwitterFacebookInstagram, and Google News. Visit smartprix.com for the most recent newsreviews, and tech guides.

Shikhar MehrotraShikhar Mehrotra
A tech enthusiast at heart, Shikhar Mehrotra has been writing news since college for an undergraduate degree in Journalism and Mass Communication. Over the last four years, he has worked with several national and international publications, including Republic World, and ScreenRant, writing news, how-to explainers, smartphone comparisons, reviews, and list-type articles. When he is not working, Shikhar likes to click pictures, make videos for his YouTube channel, and watch the American sitcom Friends.

Related Articles

ImageExclusive: Google Pixel Fold 2 360-Degree Video And 5K Renders Reveal; No More Horizontal Camera Visor

It’s not every day that we see radical new smartphone designs that could change the course of developments. For years, the Google Pixel phones have followed a similar design language, helping the models establish their identity. Leading the front is the horizontal camera visor, which has been around since the Pixel 6 came out in …

ImageSmartphone prices likely to rise due to increased import duty on sub-parts and chargers

As part of the newly announced union budget 2021, the government has proposed higher import duties on phone sub-parts (like printed circuit board assembly (PCBA), camera modules, connectors), and chargers. This is aimed at encouraging local “value addition”. “For greater domestic value addition, we are withdrawing a few exemptions on part of chargers and sub-parts …

ImageXiaomi slapped with ₹653 cr notice for tax evasion in India

Chinese smartphone maker Xiaomi has been charged with customs duty evasion worth Rs. 653 crore in India, Finance Ministry said on Wednesday. The Revenue Intelligence team of the Income Tax Department conducted thorough searches of Xiaomi India offices in India and found that the company has evaded custom duty of up to Rs. 653 crores …

ImageBudget 2018: Duty on Mobile Phone Import Increased By Another 5 Percent

Giving another boost to manufacturing in India, Government of India has further increased the customs duty on smartphone import from 15-percent to 20-percent. Which is to say imported phones like Apple’s iPhones and Google’s Pixel will get more expensive at the start of next financial year (April 2018). The announcement comes only a few weeks …

Image10 Best Applications to Resize & Compress Images

Photographs are a very important part of our lives nowadays. Whether it is making memories or saving a dress or a decoration you liked for future reference, everything is captured and stored in the form of images/photos. This is the reason why smartphone makers are equipping their devices with top-notch camera setups so that those …

Discuss

Be the first to leave a comment.

Related Products