Plan is to teach China: In the Union Budget, Finance Minister Nirmala Sitharaman has announced the removal of import duty on some parts related to mobile phones. This is expected to increase local production in the country. The move will directly benefit foreign companies like Apple and Xiaomi, as well as domestic companies. India’s electronic production has doubled to $115 billion (about Rs 99,41,100) in the last six years. With this, India has become the second largest mobile phone manufacturer in the world.
According to a report, Apple’s share of total revenue in India’s smartphone market in 2024 is 23 percent. This is followed by Samsung’s 22 per cent.
Tax removed from these components
The component by which mobile has been taxed in the budget. They include print circuit board assemblies, camera modules, and USB cables. These components were earlier taxed at 2.5 per cent.
- Parts of PCBA
- Camera module
- Connecter
- Raw material of wired headset
- Microphone
- Receiver
- USB Caleb
- Fingerprint reader
- Mobile phone sensor
Along with this, the custom duty on LCD and LED panels has also been reduced to zero. This will reduce the prices of TVs, smart TVs, laptops and smartphones.
How will India benefit?
Donald Trump is adopting the ‘America First’ policy. They are trying to lure more and more manufacturing units to the US. This is expected to escalate tensions between the US and China. In such a situation, India wants to be in a position to take advantage of the tariff war between the US and China by cutting tariffs. It will also give scope to increase India’s share in the global supply chain.
India will teach China a lesson
According to a report, the IT ministry had warned that if the government did not cut tariffs to entice foreign companies, we could lag behind China and Vietnam in the smartphone export race. Early last year, Nirmala Sitharaman announced the rationalisation and simplification of custom duty. India’s complex tariff structure has been criticised on many fronts.
After the announcement of the tariff cut, the production of electronic goods in the country will become cheaper. With this, India will be able to easily compete with countries like China and Vietnam in the production of smartphones, TVs and other gadgets.
