In New Delhi, India has decided to slash the import duty on certain components utilized in the production of mobile phones, reducing it from 15% to 10%. This strategic maneuver is anticipated to be advantageous for companies such as Apple and Xiaomi, engaged in manufacturing operations in Asia’s third-largest economy.
The revised import duty of 10% now applies to various components, including battery covers, main camera lenses, back covers, and other mechanical elements crafted from plastic and metal, as well as GSM antennas and miscellaneous parts, as stipulated by the finance ministry in a late Tuesday notification. Furthermore, the import duty on inputs essential for manufacturing these components has been completely eliminated, according to the same notification.
The rationale behind this decision is succinctly encapsulated by Rajat Mohan, a director at the tax consultancy firm MOORE Singhi, who expressed that the reduction in import duties for mobile phone parts would facilitate major global manufacturers in establishing extensive mobile assembly lines within India, thereby substantially augmenting the export of mobile phones. This aligns with earlier reports by Reuters this month, hinting at India contemplating import duty cuts on crucial components for the production of high-end mobile phones.
Welcoming this initiative, the India Cellular and Electronics Association (ICEA) asserted that this move would enhance the competitiveness of India’s mobile phone manufacturing sector on a global scale.