Govt Slashes Customs Duty on Mobiles to 15%; Industry Celebrates

Centre Cuts Customs Duty on Mobile Phones, Components to 15%; Industry Upbeat

New Delhi, July 23: The government on Tuesday announced a reduction in the basic customs duty (BCD) on mobile phones, printed circuit board assembly (PCBA), and mobile chargers from 20% to 15%.

“In the interest of consumers, I now propose to reduce the BCD on mobile phones, mobile PCBA, and mobile chargers to 15%,” said Finance Minister Nirmala Sitharaman while presenting the Union Budget 2024-2025.

Over the past six years, the Indian mobile phone industry has seen a three-fold increase in domestic production and an almost 100-fold jump in exports. India’s electronics sector reached $155 billion in FY23, with production nearly doubling from $48 billion in FY17 to $101 billion in FY23. Mobile phones now constitute 43% of total electronics production.

Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA), congratulated the government on the budget, praising its focus on enhancing manufacturing and export competitiveness. “The Finance Minister has acknowledged the tremendous growth of mobile phone manufacturing and exports,” Mohindroo told IANS.

The industry had recommended reducing the BCD on mobile phones, PCBA, and chargers/adapters to 15%, which has been accepted. Mohindroo noted that this move would enhance manufacturing, exports, and competitiveness. He also mentioned that the proposal for tariff slab rationalization would be taken up in the next six months, further strengthening the industry.

India now manufactures 99% of its smartphones domestically, significantly reducing its reliance on imports. Siddhesh Mehta, research analyst at Samco Securities, stated that this change would reduce costs and support Indian manufacturers. “Dixon Technologies will benefit the most from this move, allowing the company to strengthen its market position and grow further,” said Mehta.