In a significant move aimed at bolstering the domestic mobile phone industry, the government has proposed a reduction in import duty on mobile phones, chargers, and select components in the Union Budget for 2024-25.
Finance Minister Nirmala Sitharaman announced this measure, citing a substantial increase in domestic production and a nearly 100-fold rise in mobile phone exports over the past six years as indicators of the industry's maturation.
"The basic customs duty (BCD) on mobile phones, mobile PCBA, and mobile chargers will be reduced to 15 percent," Sitharaman stated, emphasizing the potential consumer benefits and industry growth.
The Indian Cellular and Electronics Association (ICEA) lauded the decision, anticipating a boost in export competitiveness.
Pankaj Mohindroo, ICEA chairman, remarked, "We had recommended a reduction in BCD to 15 percent, and this acceptance is a cause for celebration. The announcements will significantly enhance manufacturing, exports, and our competitive edge."
This strategic reduction in import duties is expected to not only lower costs for consumers but also invigorate the manufacturing sector, further cementing India’s position in the global mobile phone market.
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