Government slashes import duty on mobile phone spare parts to 10%

Government has slashed the import duty for components used in manufacture of mobile phones to 10% from 15%. This comes as India is positioning itself as an alternative to China in terms of supply chain

Firms have also been asking for import cuts in about a dozen components to reduce the cost of making smartphones in India.

According to the notification, the components on which the duty has been reduced include battery covers, main lens, GSM Antenna, SIM socket, screw, back cover, and other mechanical items of plastic and metal, among others.

Mobile phone exports

The Indian Cellular and Electronics Association (ICEA) had said earlier that if the government reduces import tariffs on components, and eliminates them in some categories, mobile phones export from India could triple to $39 billion over the next two years, from $11 billion in FY23.

According to the industry body India Cellular and Electronics Association, import duties on mobile phone components in India, such as camera modules and chargers, currently range from 2.5% to 20%.

Regarding, improving exports from India, ICEA had said that India levies the highest tax among six comparable manufacturing nations, including China, Vietnam, Mexico, and Thailand. "Unless they are lowered, India's mobile phone exports growth could slow down," it said.

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