Budget 2024: India Slashes Import Duty On Mobile Phone Components To 10%, Govt's Initiatives To Boost Manufacturing

Budget 2024: Ahead of Union Budget 2024, the Indian government slashed the import duty on key components used in the manufacture of mobile phones from 15 per cent to 10 per cent. The development will benefit companies like Apple and Xiaomi in manufacturing in Asia's third-largest economy.

The 10 per cent import duty on various parts, including GSM antennas, battery covers, main camera lenses, back covers, and other mechanical plastic and metal products, has been reduced, the finance ministry said in a notification issued late on Tuesday. The import duty on inputs used to manufacture these components has been cut to zero, the notification said.

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"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," said Rajat Mohan, a director at tax consultancy firm MOORE Singhi.

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Earlier this month, India was considering import duty cuts on key components for producing high-end mobile phones, news agency Reuters reported. The move will make India's mobile phone manufacturing more competitive, the India Cellular and Electronics Association (ICEA) said in a statement.