India Cuts Import Duties to Boost Mobile Phone Manufacturing

India eliminated import duties on key mobile phone components to enhance local manufacturing, benefiting companies like Apple. This move is part of India's efforts to increase its market share in global supply chains amid U.S.-China trade tensions and to streamline its complex tariff structure.

India's Finance Minister Nirmala Sitharaman announced the removal of import duties on crucial components for mobile phone production in the annual budget. This strategic move is set to bolster local manufacturing, providing a boost to notable firms such as Apple and Xiaomi.

In recent years, India's electronics production has surged, placing the nation as the world's second-largest mobile phone manufacturer. In 2024, Apple dominated the Indian smartphone market with a 23% revenue share, closely followed by Samsung with 22%, according to Counterpoint Research.

The exempted components previously faced a 2.5% tax and included items like printed circuit board assemblies, camera module parts, and USB cables. This reduction aims to strengthen India's position in global supply chains amid ongoing U.S.-China trade tensions.

(With inputs from agencies.)