Import Duty Reduction on Smartphone Parts: Boosting the "Made in India" Initiative

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India Reduces Import Duty on Mobile Phone Components to Boost Local Manufacturing and Exports

In a significant move aimed at promoting local production and exports, India has lowered the import duty on spare parts used in mobile phone manufacturing from 15 percent to 10 percent. The finance ministry officially announced this reduction on January 30, covering various components such as screws, SIM sockets, and other metallic mechanical items essential for cellular mobile phones.



Pankaj Mohindroo, Chairman of the Indian Cellular and Electronics Association (ICEA), emphasized the strategic importance of this policy intervention by the government in enhancing the competitiveness of mobile manufacturing in India. He highlighted the positive impact of such measures on the electronics sector, which has ascended from the 9th position to become India's 5th largest export in 2024. Notably, mobiles contribute over 52 percent to electronics exports, largely attributable to the success of the Production-Linked Incentive Scheme. Mohindroo described the mobile industry as the first to transition from import substitution to export-led growth within the past eight years, underscoring the sector's pivotal role in India's economic development.







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