Smartphones from leading brands such as Redmi, Realme, Samsung, Vivo, Apple and others wil become costlier now.
The reason is that, Govt has introduced a new 10% import duty on all display panels, and touch screens and this can impact the MRP of all smartphones.
How much extra do you need to pay now?
Smartphones Will Become Costlier: Here’s The Reason
In order to encourage more Make in India products, and to make India ‘Atmanirbhar’, that is self-reliant, Govt has now imposed a new 10% import duty on all display panels for smartphones.
Since majority of display panels are right now imported, this move will make all smartphones costier.
As per various sources, Govt has determined that this is the right time to impose such additional duty on imported components of smartphones.
Now, display panels and touch screens are part of the phased-manufacturing programme (PMP), and by imposing this new 10% import duty, Govt has made it clear that either manufacture smartphone components in India, or pay higher price.
In case any company is able to manufacture display panels and touch screens in India, and then use them in smartphones, then the 10% import duty won’t be charged, and the smartphones will become cheaper.
Upto 5% Expensive Smartphones?
The direct impact of 10% import duty on display panels of smartphones will translate to roughly 2-5% increase in the MRP of the smartphones.
Hence, if a smartphone costs Rs 10,000 now, then after the import duty, it will cost Rs 10,500.
Infact, if we add the cess associated, then the actual additional import duty will become 11%.
As of now, only 4 companies are manufacturing display panels in India, which includes Holitech and TCL.
We are expecting that more and more companies will now set up manufacturing base in India, but the immediate impact will negative, since festive season is round the corner, and the industry is already dealing with coronavirus impact.
Chairman of Indian Cellular and Electronic Association, Pankaj Mohindroo, has said that due to prevailing market conditions due to lockdown and the pandemic, this decision to impose import duty should have been rolled over.
We will keep you updated, as more details come in.
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