Govt hikes import duty on electronic items, mobile phones, television sets, ovens

Apple to take major hit; may assemble more in India

In a bid to promote Make in India, the government on Friday increased the import duty on a number of electronic items such as mobile phones, television sets, microwave ovens, LED lamps and water heaters.

Customs duty on television sets has been hiked to 15%, and on push button telephones or mobile phones to 15%. These mobile phones attracted no charges earlier.

The import duty on mobile phones is expected to hurt US-based iPhone maker Apple the most as the company imports close to 90% of its devices into India. The move is expected to prompt Apple to assemble more in India.

Apple had earlier demanded a 15-year custom duty exemption on manufacturing and raw materials, components and capital equipment for smartphone manufacturing in India.

The technology major had also announced it would set up a manufacturing unit in Bengaluru and had made presentations to the Commerce Ministry officials.

The import duty on monitors and projectors, water heaters and hair dressing instruments has been doubled to 20%, the notification said. Customs duty on microwave ovens has been doubled to 20% and that on video recording equipment has been hiked to 15% from the current 10%.