New Import Cuts Announced On Phone Parts In India, Could It Make Budget Phones Cheaper? – News18

NEW DELHI:India has lower the import responsibility on some elements utilized in making cellphones to 10% from 15%, a transfer benefiting corporations like Apple and Xiaomi that manufacture in Asia’s third-largest economic system.

The import responsibility on elements similar to battery covers, essential digicam lenses, again covers, different mechanical objects of plastic and metallic, GSM antenna, and different elements, has been diminished to 10%, the finance ministry mentioned in a notification late on Tuesday.

The import responsibility on inputs used to fabricate these parts has been lower to zero, the notification mentioned.

Prime Minister Narendra Modi has lately promoted India as a smartphone manufacturing hub, prompting corporations similar to Apple, Xiaomi, Samsung Electronics and Vivo to develop meeting of telephones.

However, duties on cell phone elements have been the best amongst six comparable manufacturing nations, together with China, Vietnam, Mexico, and Thailand, which led the business to push for tax reductions.

“Duty cuts on import of mobile phone parts would help big global manufacturers to set up large scale mobile assembly lines in India, and substantially increase exports of mobile phones,” mentioned Rajat Mohan, a director at tax consultancy agency MOORE Singhi.

Earlier this month, Reuters reported that India was contemplating import responsibility cuts on key parts for producing high-end cellphones.

The transfer will make India’s cell phone manufacturing extra aggressive, the India Cellular and Electronics Association (ICEA) mentioned in a press release.

With international cellular corporations manufacturing in India, cell phone exports from the nation doubled year-on-year to $11.1 billion within the fiscal 12 months to March 2023 and are anticipated to rise to $15 billion within the present fiscal 12 months, in line with business estimates.

(This story has been edited by News18 workers and is revealed from a syndicated news company feed – Reuters)