Modi govt slashes import duty on mobile spare parts from 15% to 10% bringing joy to the manufactures, wholesalers, retailers and consumers.
Companies in the sector have been pushing the government for cuts on nearly a dozen components to reduce the cost of making smartphones in India and level up the playing field with regional competitors such as China and Vietnam.
In response to the above requests, "The Government of India" has cut import duty for components used in manufacture of mobile phones to 10% from 15% earlier.
These components reportedly include battery enclosures, primary lenses, rear covers, and various mechanical components made from a combination of plastic and metal.
The latest reduction is anticipated to have a beneficial influence on the mobile phone sector, fostering expansion and enhancing competitiveness in the worldwide market.
Companies in the sector have been pushing for cuts on nearly a dozen components to reduce the cost of making smartphones in India and level up the playing field with regional competitors such as China and Vietnam.
Mobile phone exports from India could triple to $39 billion over the next two years, from $11 billion in FY23, if the government reduces import tariffs on components, and eliminates them in some categories, the Indian Cellular and Electronics Association (ICEA) had said earlier.
The Indian mobile industry is expected to make about $50 billion worth of mobile phones in FY24, which is likely to rise to $55-60 billion next fiscal year. Exports are likely to rise to about $15 billion in FY24, and then to $27 billion in FY25.
This move by the government has caused immense joy to the manufactures, wholesalers, retailers and consumers as they can now afford the latest smartphones they desire which was earlier not possible due to excess import duties on these smartphone components for manufactures and high MRP's for consumers.
Now the question to ponder upon is "whether this move by the government will lead to economic growth via increase in the number of jobs and per capita income or not".
