India Slashes Import Duty on Smartphone Parts to 10%

smartphone manufacturing
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In Short
  • The Indian government has reduced the import duty on some smartphone components from 15% to 10%.
  • Some of the components include main lens, back cover, GSM antenna/antenna of any technology, PU case/sealing gasket, and more.
  • This decision may lead some smartphone makers or slash prices by 3% to 5% in the entry-level and budget segments.

The Finance Ministry of India has decided to reduce the import duty on some smartphone parts to 10%. The move comes amid India’s continuous growth in smartphone exports worldwide. India is now the 5th largest exporter of electronics in the world, moving up from the 9th position, and well, smartphones constitute nearly 52% of the shipments.

The decision to reduce the import duty on smartphone parts should help companies such as Apple and Xiaomi who assemble their smartphones in India and OEMs may choose to pass on the benefit to consumers.

Smartphone Prices May Come Down by 3% – 5%

According to an official Finance Ministry notification, import duty for several smartphone parts has been reduced from 15% to 10%. It includes components like battery cover, front cover, middle cover, main lens, back cover, GSM Antenna/ Antenna of any technology, PU case/ Sealing Gasket –

Other articles of Polyurethane foam like sealing gaskets/case, sealing gaskets/cases from PE, PP, EPS, PC, and all other individual polymers or combination/combinations of polymers, SIM socket, screw, and other mechanical items of plastic/metal.

It’s important to note that the import duty for materials used to manufacture the components listed above has been reduced to zero in India. Analysts suggest this move might bring down phone prices by up to 5%, at least in the entry-level and budget segments. In recent years, we have seen budget smartphones getting expensive in India, so this is a welcome change.

To incentivize local smartphone manufacturing, the Indian government implemented a custom duty of 15% in 2019. And now, the government has relaxed duties on some of these components to 10%. Global companies like Foxconn, Apple, and Samsung have set up their manufacturing units in India, and it’s likely the decision will push more OEMs to manufacture their smartphones in India.

So what do you think about the relaxation of import duty on smartphone components by the Indian government? Let us know your thoughts in the comment section below.

VIA Gadgets 360
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