New Delhi: Just a day ahead of the Interim Budget, the central government has lowered import duty on some components used in manufacturing of mobile phones like battery cover and mechanical items of plastic and metal by 5 per cent -- a move that is likely to boost local production and benefit the companies like Apple and Xiaomi.
Mobile phone components on which the duty has been reduced include battery cover, front cover, middle cover, main lens, GSM Antenna, SIM socket, screw, and other mechanical items of plastic and metal, as per a notification issued by the Union finance ministry on Tuesday.
Import duty on these items have been lowered to 10 per cent from the earlier rate of 15 per cent. The decision came just a day ahead of the presentation of the Union Budget. Finance Minister Nirmala Sitharaman is scheduled to present the Interim Budget on February 1.
According to India Cellular and Electronics Association (ICEA), import duty on mobile phone components in India is the highest among six comparable manufacturing nations, including China, Vietnam, Mexico, and Thailand.
Welcoming the duty cut, ICEA said the move will make India’s mobile phone manufacturing more competitive.
Promoting local manufacturing of mobile phones has been a key focus of Prime Minister Narendra Modi government’s ‘Make in India’ and production linked incentive (PLI) initiatives. These initiatives have helped India become the second-largest manufacturer of mobile phones after China.
Published 31 January 2024, 07:09 IST