In the latest budget for the fiscal year 2024-25, the government has decided to lower the customs duty on imported mobile phones by up to 6%, bringing it down to 15% from the previous 20%. Finance Minister Nirmala Sitharaman, during the presentation of the Union Budget, suggested reducing the import duty on mobile phones, chargers, and certain components used in handset manufacturing. She highlighted the significant growth in domestic production and exports of mobile phones in the past six years, indicating the maturity of the Indian mobile phone industry.
“With the aim of benefiting consumers, I am proposing a reduction in the Basic Customs Duty (BCD) on mobile phones, mobile PCBA, and mobile chargers to 15%,” stated Sitharaman. Previously, the BCD on mobile phones, chargers, and motherboards stood at 20%. The India Cellular and Electronics Association (ICEA) expressed that this decision would improve India’s export competitiveness in the mobile phone sector.
ICEA Chairman Pankaj Mohindroo mentioned that imported mobile phones might see a reduction of 5-5.5% in prices for certain models, while the decrease in charger duty could impact the final phone prices by 0.15 to 0.50% as domestic manufacturers are likely to lower their prices as well. The majority of mobile phones sold in India are domestically produced.
Additionally, the government is considering exempting specific goods used in mobile phone connector manufacturing and oxygen-free copper for resistor production from BCD. On the other hand, there is a proposal to raise the import duty on motherboards by 5% to promote local telecom gear manufacturing in the upcoming fiscal year.
“To encourage local manufacturing, I suggest increasing the BCD from 10% to 15% on PCBA of specified telecom equipment,” announced Finance Minister Nirmala Sitharaman. This increase in basic customs duty for telecom PCB assembly is accompanied by an exemption for critical minerals essential for communication equipment manufacturing. The finance minister has proposed a full exemption on 25 critical minerals used in high-tech electronics from customs duties to support the industry’s growth.
Leave a comment