Government Reduces Customs Duty on Mobile Phones to Boost Local Manufacturing

The Indian government, in its FY25 budget, has reduced customs duty on imported mobile phones from 20% to 15%. This move aims to make mobile phones cheaper, enhance the export competitiveness, and support the domestic manufacturing industry. Industry leaders welcome this decision and anticipate increased production and consumer demand.

The Indian government has announced a reduction in customs duty on imported mobile phones, slashing it from 20% to 15% as part of the FY25 budget. This significant change aims to make mobile phones more affordable for consumers.

Finance Minister Nirmala Sitharaman, unveiling the Union Budget for 2024-25, highlighted that the reduction in import duty is intended to bolster the domestic mobile phone industry's competitiveness. She pointed out that the Indian mobile phone sector has seen a three-fold increase in domestic production and a nearly 100-fold jump in exports over the last six years.

Industry leaders, including ICEA chairman Pankaj Mohindroo and Xiaomi India President Muralikrishnan B, have hailed the move. They believe it will boost local manufacturing and competitiveness, leading to reduced production costs and increased consumer spending on smartphones.

(With inputs from agencies.)