Foxconn, Tata Petition Indian Govt For Zero Duty On US Mobile Imports

New Delhi, Apr 1 (KNN) Mobile phone manufacturers, including Apple's contract manufacturer Foxconn and the Tata group, have petitioned the Indian government to reduce duty on mobile imports from the United States to 0 per cent.

The companies fear losing business to competitors in China and Vietnam if the Trump administration implements reciprocal tariffs similar to those recently mandated on cars and automotive components.

India currently imposes a 16.5 per cent duty on mobile phone imports, while countries like the United States allow shipments at zero duty.

Mobile phone exports to the US from India are currently valued at approximately USD 10 billion, with Apple's iPhone shipments accounting for USD 8 billion of that total.

Local companies are concerned that if the US government follows through on threats of reciprocal tariffs, major manufacturers such as Apple, Samsung, and Motorola may relocate their production operations to other countries with more favourable trade conditions.

This potential shift could significantly impact India's growing electronics manufacturing sector.

The India Cellular & Electronics Association has requested the government address this matter urgently as officials work to develop a bilateral agreement framework with the United States.

The organisation emphasises the importance of maintaining India's competitive position in global electronics manufacturing.

Foxconn and Tata have been rapidly increasing iPhone production in India, benefiting from the government's production-linked incentive (PLI) scheme designed to encourage local manufacturing.

Similarly, local player Dixon Technologies has been expanding factory output to capitalise on India's growing manufacturing momentum.

(KNN Bureau)