Make In India Push: Import Duty On Mobile Increased; India Now 2nd Largest Phone Producer!
Govt. of India has increased import duty of major mobile components by 10%
Slowly, but gradually and systematically (more importantly), India is catching up the manufacturing highway, in a grand manner.
Latest data proves that India is now world’s 2nd largest mobile manufacturing nation in the world, behind only China.
Meanwhile, in a bid to push Make in India initiatives, and to encourage more local manufacturing, Indian Govt. has increased import duty on some key mobile components by 10%.
This means that if your next phone is not Make in India, then it will be expensive.
World’s 2nd Largest Phone Producer Is India!
Indian Cellular Association has informed Telecom Minister Manoj Sinha and IT Minister Ravi Shankar Prasad, that India is now world’s 2nd largest mobile manufacturer.
This feat was achieved when we successfully beat Vietnam in producing mobile handsets last year. In 2017, India produced 11% of global mobiles, sold anywhere in the world, which is more than any other country the world, except China.
In 2014, India produced just 3%.
ICA National President Pankaj Mohindroo said,
“We are happy to inform you that with the strenuous and calibrated efforts of government of India, ICA and FTTF, India has now emerged as the second largest producer of mobile handset by volume,”
The data has been collected from HS, China’s National Bureau of Statistics and Vietnam General Statistics Office.
Ministry of IT has set up a task force, which will ensure that India manufacturers 500 million mobiles by the end of 2019 whose combined value will be $46 billion.
Besides, the Task Force has a target of exporting 120 million mobiles from India, by next year.
Make in India Push: Import Duty Increased by 10%
Meanwhile, in order to encourage more local production of mobiles, and components being used in the mobile manufacturing, Govt. of India has increased import duty of major mobile components by 10%.
These components include printed circuit boards (PCBs), camera modules and connectors. Hence, if any mobile company imports these components from outside India, and then assemble them in India, then the overall cost will increase.
These changes have been announced by The Central Bureau of Excise and Customs and will be effective April 2nd, 2018.
In February, Govt. had already announced an increase of price in several electronic products:
10% import duty on PCB of chargers (implemented now)
15% duty on LCD panels
An increased duty of 10% to 20% on lithium-ion batteries
5% to 15% on chargers, adapters, battery packs, wired headsets, receivers, keypad, antenna, side keys and USB cables.
We will keep you updated, as more details come in.