India’s Union Budget 2023 was presented earlier today. A number of announcements were made, including dedicated research focusing on 5G, artificial intelligence, disruptive technology and more. As part of the Finance Minister’s proposal, customs duties on electronic device parts and inputs will be reduced.
The government will reduce customs duties on imports of components like the camera lenses used in smartphones, according to the Finance Minister. The tax will be reduced from 2.5 percent to zero. In order to promote smartphone production in India, a concessional duty will be imposed on lithium-ion cells for batteries. It will be valid for one year. Brands will be able to launch 5G smartphones in the budget segment as a result of the benefits. The FM also proposed reducing the customs duty on parts of TV panels with open cells from 5 percent to 2.5 percent.
In the coming financial year, smartphones and smart televisions will be more affordable due to the reduction of custom duties. We will have to wait and see how the prices are revised. The decision of the government has also been hailed by several OEMs. Recent years have seen massive growth in the Indian smartphone industry. In 2022, it will increase to 31 percent from 5.8 percent in 2014-15. As a result of various government policies and incentives, the country is already the world’s second-largest mobile phone manufacturer.
By reducing customs duty, brands like Apple will also be able to expand production outside of China and promote the ‘Make in India’ initiative.
