Budget 2024: Presently, China is the leading smartphone manufacturer in the world. Even after the implementation of programs such as Make in India, India is still highly dependent on China to import components that are used to manufacture smartphones. However, the government has found a way to reduce the dependence on Chinese manufacturers for the imports of smartphone components.
The Ministry of Electronics and Information and Technology has recently demanded that the government should deliberate about reducing the import duties on components used to manufacture smartphones in the upcoming budget. These components include parts such as Printing Circuit Board Assembly, Adapter, charger, Cell, Mic, speakers and other components.
Benefits of Reducing Import Duties on Smartphone Components
If the government reduces import duties for smartphone components, it will result in the decreased manufacturing cost of smartphones. This move will also encourage foreign brands other than Chinese manufacturers to set up their domestic facilities in India. Reduced import duties on smartphones can make India one of the leading smartphone manufacturers in the world and significantly reduce reliance on China for importing smartphone components.
MEITY Demands
The Minister of Electronics and Information and Technology (MEITY) has requested to reduce the import duties on Adapters and mobile chargers from 20 per cent to 15 per cent. Apart from this, the Ministry has also requested the government to reduce the duty on mechanics, mics and receivers from 15 per cent to 10 per cent. It is estimated that the reduced tariff will result in increased smartphone exports from the country.
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