The government on Tuesday proposed slashing import duty on mobile phones, chargers and some components that are used for manufacturing of handsets in the Union Budget for fiscal year 2024-25.
Finance Minister Nirmala Sitharaman said with a three-fold increase in domestic production and almost 100-fold jump in exports of mobile phones over the last six years, the Indian mobile phone industry has matured.
"In the interest of consumers, I now propose to reduce the BCD (basic customs duty) on mobile phone, mobile PCBA and mobile charger to 15 per cent," Sitharaman said.
Earlier BCD on mobile phones, chargers and motherboard was 20 per cent.
The government has proposed to exempt specified goods for use in manufacturing of connectors in mobile phones and oxygen-free copper for use in manufacturing of resistors (an electronic component) from BCD levy.
The BCD on specified goods for use in manufacturing of connectors was in the range of 5 to 7.5 per cent and oxygen-free copper for use in manufacturing of resistors attracted 5 per cent BCD.
Mobile phone industry body ICEA said that the move will enhance export competitiveness of India in the segment.
"We had recommended to reduce BCD on mobile phones, its PCBA and charger/adapter to 15 per cent, which has been accepted. The mobile and electronics industry is elated with the announcements and will go a long way to enhance manufacturing, exports and our competitiveness," ICEA chairman Pankaj Mohindroo said.