According to a Finance Ministry notification, duty has been lowered on components such as battery cover, front cover, middle cover, main lens, back cover, GSM Antenna, SIM socket, screw and and other mechanical items of plastic and metal.
All these items will now attract import duty at 10 per cent as against 15 per cent. However, the notification has not specified any date for implementing lower duty. The decision came as the Finance Minister Nirmala Sitharaman is scheduled to present the Interim Budget tomorrow.
According to India Cellular and Electronics Association (ICEA), import duty on mobile phone components in India is the highest among six comparable manufacturing nations, including China, Vietnam, Mexico, and Thailand.
Welcoming the duty cut, ICEA said the move will make India’s mobile phone manufacturing more competitive.
Promoting local manufacturing of mobile phones has been a key focus of Prime Minister Narendra Modi government’s ‘Make in India’ and production linked incentive (PLI) initiatives. These initiatives have helped India become the second-largest manufacturer of mobile phones after China.
