Budget 2024: Govt Cuts Import Duty For Parts Used in Mobile Phones To 10 Percent

New Delhi: The Central government on Tuesday announced a reduction in the import duty for parts used in the manufacturing of mobile phones, lowering it from 15 per cent to 10 per cent. The revised import duty applies to various parts, including battery covers, main camera lenses, back covers, and other plastic and metal mechanical items, as well as GSM antennas.

Additionally, the import duty on mobile components like PU case/sealing gasket, polyurethane foam articles (sealing gaskets/cases from PE, PP, EPS, PC, and other polymers or polymer combinations), SIM sockets, screws, and other plastic and metal mechanical items has also been decreased. (Also Read: Interim Budget 2024: Why Will Economic Survey Not Be Presented Today?)

This government initiative is expected to benefit companies such as Apple and Xiaomi, encouraging manufacturing in Asia's third-largest economy. According to reports, industry firms have been recommending for duty cuts on around 12 components to reduce production costs of smartphones in India. This move aims to create a more competitive environment against neighboring rivals like China and Vietnam.

The Global Trade Research Initiative (GTRI) recently stated that maintaining the current rates would support balanced industry growth and long-term development in India's expanding smartphone market.

Earlier this month, Reuters reported that India was contemplating import duty cuts on key components for the production of high-end mobile phones. (Also Read: We Will Bring Full-fledged Budget After Forming New Government: PM Narendra Modi)y

(With Inputs From Reuters)