The union’s 2023 budget has provided an impetus for domestic manufacturing of mobile phones and televisions, with Finance Minister Nirmala Sitharaman outlining plans to extend exemption from duty on components for the next financial year.
Manufacturers in India will be exempt from import duties on certain components and parts that go into every mobile phone or smartphone; For example, the camera. This means that tariffs on mobile phone components will remain zero for the next fiscal year. The standard fee for importing these parts is 2.5%.
“The budget also recognizes the growing importance of the smartphone industry in India, where production increased significantly in the last financial year. 5G technology has been a major focus in the budget, with projections stating that up to 45% of devices sold in 2023 will be 5G-enabled.” “.
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The concessional charge on lithium-ion cells used to manufacture battery packs used in cell phones will last for another year.
“To provide further impetus for domestic value addition, the Finance Minister has proposed easing import duties on certain parts, including camera lens and batteries, for another year,” said Prabhu Ram, Head of Industry Intelligence Group, at Cyber Media Research. .
The figures show the impact of India’s industrialization drive over the past two years, with one of the initiatives being the Phased Industrialization Programme.
Official government figures peg mobile phone manufacturing in India at 310 million units R2,75,000 crore in the latest financial year. This was up from the 58 million units manufactured in 2014-15 R18,900 crore.
“Mobile production in India has seen a massive increase in recent years due to policy subsidies,” said Sanmeet Singh Kochar, Vice President – India, Middle East and North Africa at HMD Global, makers of Nokia smartphones. He said the fee reduction was “a big step in that direction”.
TV manufacturing will be able to benefit from a reduction in tariffs for certain parts used to manufacture display panels. The rate was reduced to 2.5% from 5% previously.
Could this lead to higher prices for TVs? “This is a welcome step by the Government of India to reduce open cell tariffs to 2.5%, and we will pass this benefit on to customers. TV rates can come down to R“3000 on bigger screens,” said Avnet Singh Marwah, CEO and founder at Super Plastronic Pvt Ltd, which makes TVs for brands including Kodak and Thomson.