Import duty on mobile phone parts reduced from 15 to 10 percent: Ashwini Vaishnav

New Delhi (Uttam Hindu News): India has reduced the import duty on components like battery covers, lenses and SIM sockets used in mobile phone manufacturing from 15 percent to 10 percent. The aim of this step is to promote local production and exports as well as reduce product prices in the local markets.

The Finance Ministry on January 30 issued a notification regarding reduction in duty on import of components including screws, SIM sockets or other metal mechanical items for cellular mobile phones. Telecom Minister Ashwini Vaishnav wrote on social media platform ‘X’ that harmonizing tariffs will strengthen the mobile phone manufacturing environment.

Vaishnav said rationalizing customs duties brings much-needed certainty and clarity to the industry. Ajay Srivastava, co-founder of the Global Trade Research Initiative (GTRI), said the duty cut will have no impact on improving the export competitiveness of mobile phones made in India as all components and parts used in making mobile phones for export. Components can already be imported at zero duty under various government schemes like Special Economic Zones (SEZ), Advance Authorisation. Companies like Apple take advantage of these schemes.

Srivastava said the government should look into whether the benefit of the duty cut is passed on to domestic mobile phone buyers through price cuts. Indian Cellular and Electronics Association (ICEA) Chairman Pankaj Mahendru said this is an important policy intervention by the government towards making mobile manufacturing competitive in India. Mahendru said that electronics is set to become India’s 5th largest export sector in 2024, which was at 9th position a few years ago.