2023 Budget Impact: Mobile phones are expected to get cheaper in India

Budget 2023: There are good chances that mobile phone prices will not fall if smartphone manufacturers decide not to pass on the benefit to customers.

Smartphones could get even cheaper in the next fiscal year.

Posted by Ankita Garg: Smartphones may become cheaper in the next financial year as Union Finance Minister Nirmala Sitharaman announced today the reduction of customs duties for many products and services, which will lead to lower prices of electronic devices in the near future. Here is everything you need to know.

In her fifth and final full budget of the Modi government, Sitharaman has proposed reducing customs duties on the import of some inputs for the manufacture of mobile phones. “To further deepen local added value in mobile phone manufacturing, I propose to provide relief in import tariffs for certain parts and inputs such as camera lens and to continue concessional duties on lithium-ion cells for batteries for another year,” she said. .

However, chances are good that phone prices may not come down if smartphone manufacturers decide not to pass on the benefit to customers. Some companies may decide to keep the profits they will get due to lower customs fees than they were paying before.

Similar to cell phones, the government has also proposed reducing tariffs on parts of the open-cell television panels. Fees have been reduced from 5 percent to 2.5 percent, so TV prices are also likely to drop by a certain margin because open cell panels account for up to 70 percent of the manufacturing cost of LED TVs.

Speaking about the latest announcement, Managing Director, Sony India, Sunil Nayyar said: PTI, “The recently announced reduction in core tariffs for many TV component imports is a huge boost for the TV industry. We welcome this entire budget and are optimistic about our future business plans in India.” But it was not mentioned whether or not the feature will roll over to customers.

Manish Sharma, Chairman, Panasonic Life Solutions India, also commented on the change and said, “It is encouraging to see reduced tariffs for inputs/parts of certain electronic items such as lithium-ion batteries, TV and camera lens. The feasibility of enhancing backward integration thus enabling industrialization Local Electronics.

It remains to be seen whether or not electronics will become cheaper in the next fiscal year. Apple iPhones are also expected to become more affordable in the near future as the company has recently increased production of its devices in the Indian market.