A new tax reduction by the Indian Finance Minister will make Made in India smartphones 15% cheaper for local customers.
To boost the Indian mobile industry, the basic customs duty on smartphone components will be reduced by 15% in the 2024 Union Budget. Only phones assembled in India will be affected by the reduction as it applies only to parts, not the entire unit.
Analysts predict the move will boost local assembly and attract global investments. It could enhance India’s position as a global smartphone manufacturing hub and significantly increase smartphone sales, especially under INR25,000 (under $300).
To boost the digitalization and implementation of smart technology by the Indian population, the Modi administration launched the “Make in India” initiative nearly 10 years ago.
Samsung Galaxy M35, Xiaomi Redmi 13 5G, and OnePlus Nord 4 are some of the most popular phones built during this campaign. Although Apple is not part of the government campaign, it has built some iPhone 15 units in India.
According to the government, BCD for PCBA of specified telecom equipment is being increased from 10% to 15% to encourage domestic manufacturing. Accordingly, the government will remove the BCD on oxygen-free copper for resistor manufacture, subject to certain conditions. In addition, the FM announced that some connector parts will be exempt from government regulation.
