In a bid to boost the Local Manufacturing of Mobile Phones and their Parts, India increases Custom Duty on Mobile Phone Parts to upto 2.5%.
Today while presenting the Budget 2021, the Finance Minister of India, Nirmala Sitharaman said, to increase the domestic value addition, we are withdrawing few exemptions on Mobile Phone parts and Chargers.
More specifically, the Government is increasing custom duty on some mobile parts to upto 2.5%.
The Indian Government expects, increasing custom duty will grow the Domestic Value Addition of Mobile phones and their parts from the current 15-20% to 35-40%.
To control the import of Mobile Phones and their parts, the Indian Government has already rolled out the Production Linked Incentive Scheme (PLI Scheme). Some International and Domestic Mobile Phone manufacturing companies have already got approval under the PLI scheme to manufacture Mobile Phones and their parts in the country. In addition to that some Electronic Component manufacturing companies have also got approval for manufacturing selected electronic components.
Over the next five years, these companies are expected to produce items of value more than Rs. 10.5 Lakh crore. Out of this production value 60% of it will be exported that not just improves the Domestic Value addition but is also said to generate more than 8 Lakh employment.
Fulfilling the Prime Minister, Narendra Modi vision of making India Atmanirbhar this decision has been made.
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Reference: Press Information Bureau