Finance Minister Nirmala Sitharaman has announced a substantial reduction in customs duty on mobile phones, mobile PCBAs and mobile chargers from the existing 20% to 15%. Sitharaman said that the Indian mobile industry has matured, with domestic production increasing threefold and exports of mobile phones increasing 100-fold in the last 6 years.
Also Read | Budget 2024 Live updates
Speaking during her budget speech, FM Sitharaman said, “With a three fold increase in domestic production and almost 100 fold jump in exports of mobile phones over the last six years, the Indian mobile industry has matured. In the interest of consumers. I now propose to reduce the BCD (Basic Customs Duty) on mobile phone, mobile PCBA and mobile charger to 15%.”
A Mint report earlier this month first broke the news of the government’s plans to reduce customs duty on consumer electronics products to deepen domestic manufacturing, reduce import dependence and encourage value addition in the sector.
Also Read | Budget 2024: FM Nirmala Sitharaman announces cut in custom duty on gold and silver to 6%
Notably, in January this year, the Union government had also reduced the import duty on a number of parts used in the manufacture of mobile phones from 15% to 10%. The products on which import duties were reduced in January include inputs used in the manufacture of battery covers, main lens, back cover, antennas, SIM sockets and other mechanical parts made of plastic and metal.
Talking about the impact of customs duty cut, Industry Analyst Abhilash Kumar told HT Tech (Mint’s sister publication), “I believe sub ₹10,000 segment is going to be exciting as Qualcomm, Mediatek and Unisoc are launching affordable 5G chipset. So, people in the ₹10000 to 13000 price segment might switch to sub ₹10,000 if 5G devices are available. It might have a little impact in the mid-segment but I believe it would be a minimal one if any. Don’t expect much price cut in any other segment right now. However, the card offers and financial tieups of pure player platforms like Flipkart and Amazon along with the festive sales may bring the price down in H2 2024″
Customs duty cut on Gold, silver and platinum:
Meanwhile, the Finance Minister also proposed to reduce the customs duty on gold and silver from 6% and on platinum to 6.4%. Sitharaman said that the duty cut is aimed at enhancing domestic value addition in gold and other precious metal jewellery.
“To enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent,” FM Sitharaman said in her budget speech.
3.6 Crore Indians visited in a single day choosing us as India’s undisputed platform for General Election Results. Explore the latest updates here!
Published: 23 Jul 2024, 12:17 PM IST