Government on Tuesday reduced the import duty for components used in the manufacturing of mobile phones to 10 per cent from 15 per cent
The components on which the import duty has been cut includes battery cover, front cover, middle cover, main lens, back cover, GSM Antenna/Antenna of any technology, PU case/sealing gasket and other articles of polyurethane foam like sealing gaskets/case, sealing gaskets/cases from PE, PP, EPS, PC and all other individual polymers or combination/combinations of polymers, SIM socket, screw, other mechanical items of plastic and other mechanical items of metal.
Recently, the Global Trade Research Initiative (GTRI) in its report had urged the government to not cut import duties on electronic components used in making smartphones in the forthcoming Budget as the current tariff structure has already proven successful and changing them could harm local manufacturing. The GTRI had said that maintaining the current rates would help balance industry growth and long-term development in India’s growing smartphone market.
The suggestion is in contrast to the demand of industry body India Cellular and Electronics Association (ICEA) that import duty cuts on mobile phone components can increase domestic production of handsets by 28 per cent to USD 82 billion, boost exports, and support indigenous manufacturing.
