Import duty on smartphone parts abolished, these companies will benefit, Made in India gets benefit
Budget 2025: In the last six years, India's electronics production has doubled to $115 billion (about ₹ 99.41 lakh crore). India has now become the world's second-largest mobile phone manufacturer.
The central government in its budget proposed the abolition of customs duty for specific key parts of mobile phone production. Finance minister Nirmala Sitharaman revealed in her speech for Union Budget 2025. It will work a lot in favor of companies like Apple, Xiaomi, and other mobile companies of foreign origin but producing goods in India.
The electronic output in India grew two times in six years to $115 billion (Rs 99.41 lakh crore approximately). India stands at present at a position of being the second-largest producer of mobiles in the whole world. India's smartphone market in 2024 ranked at first position with a 23% value and at second position with a 22% value for Samsung.
Smartphone parts that were previously charged a 2.5% import duty will now be tax-free. These include printed circuit board assembly (PCB Assembly), parts of camera modules, USB cables, etc. This decision will help India increase its share in the global supply chain, especially at a time when trade tensions remain between the US and China.
The Indian government is constantly making efforts to encourage domestic manufacturing. A target has been set to take electronics manufacturing to $500 billion (about ₹43.32 lakh crores). The government has reduced the duty on open cell and other LCD/LED components to 5%, which will boost local manufacturing companies like Dixon.
