Government Slashes Import Duty on Mobile Phones to Boost Exports

The government has proposed reducing import duty on mobile phones, chargers, and components to 15%. This move aims to boost the domestic production and export competitiveness of the Indian mobile phone industry, which has seen a significant increase in exports and domestic production over the past six years.

The government on Tuesday proposed slashing import duty on mobile phones, chargers, and some components used for manufacturing handsets in the Union Budget for fiscal year 2024-25.

Finance Minister Nirmala Sitharaman highlighted a three-fold increase in domestic production and a nearly 100-fold jump in mobile phone exports over the last six years, underscoring the maturity of the Indian mobile phone industry.

''In the interest of consumers, I now propose to reduce the BCD (basic customs duty) on mobile phones, mobile PCBA and mobile chargers to 15 per cent,'' Sitharaman stated. The mobile phone industry body, ICEA, welcomed the move, noting its potential to enhance India's export competitiveness. ''We had recommended reducing BCD on mobile phones, its PCBA, and charger/adapter to 15 per cent, which has been accepted. The mobile and electronics industry is elated with the announcements and will go a long way in enhancing manufacturing, exports, and our competitiveness,'' said ICEA chairman Pankaj Mohindroo.

(With inputs from agencies.)