Prices of imported smartphones are set to rise as the government increased basic customs duty to 20% from 15% in the Union Budget 2018.
This will not only boost the local value addition in domestic electronics manufacturing, but also create more jobs, the Minister said in his budget speech.
Presenting the Union Budget 2018-19, Jaitley said "To further intensify domestic value addition and Make in India (programme)in these sectors, I propose to increase the customs duty on certain items... I propose to increase customs duty on mobile phones to 20% from 15% and on some other parts and accessories to 15%."
Reacting to the decision, Indian Cellular Association (ICA) National President Pankaj Mohindroo said this will be the "last nail in the coffin" of imports.
"We are reaching a situation where imports would be nearly impossible," Mohindroo added.
He said since bulk of mobile phones are manufactured domestically, there will be no impact on their prices. The exception will be a few brands, that are still making phones overseas.