Finance Ministry Slashes Import Duty on Mobile Phone Components to Boost Exports

ENA Sectors 2024-01-31 13:38:06 New Delhi, Jan 31 (KNN) The Ministry of Finance has announced a reduction in import duties on components used in mobile phone manufacturing, decreasing them from 15 per cent to 10 per cent in a bid to boost export potential. The revised duties encompass various items such as battery covers, main lenses, GSM antennas, SIM sockets, screws, back covers, and other mechanical elements made of plastic and metal. Numerous companies advocated for duty cuts on multiple components to alleviate the production costs of mobile phones in India, aligning them competitively with counterparts in China and Vietnam. The India Cellular and Electronics Association (ICEA) disclosed that current import duties on mobile phone components in India range from 2.5 per cent to 20 per cent, with India having the highest taxes among six comparable manufacturing nations, including China, Vietnam, Mexico, and Thailand. ICEA emphasised that unless these taxes are reduced, the growth of India's mobile phone exports could be impeded. Unless they are lowered, India's mobile phone exports growth could slow down, it stated, as reported by BS. India's mobile phone exports witnessed a significant surge, doubling to USD 11.1 billion in 2022-23 compared to the previous fiscal year. Forecasts by industry experts anticipate exports to reach USD 15 billion in 2023-24, with an already achieved figure of USD 5.5 billion as of August. Notable players in India's mobile phone export sector include Samsung, Xiaomi, and Apple, with the latter considering the production of iPad and AirPods in India as part of a strategic move away from manufacturing in China. (KNN Bureau) 36485 https://knnindia.co.in/news/newsdetails/sectors/finance-ministry-slashes-import-duty-on-mobile-phone-components-to-boost-exports 2024-01-31 13:38:06 knnindia.co.in Finance Ministry Slashes Import Duty on Mobile Phone Components to Boost Exports