Finance Minister Nirmala Sitharaman has slashed customs duty on mobile phones and their components, a move that could see a reduction in prices of imported handsets. The announcement came as a part of the Union Budget for fiscal year 2024-25 on Tuesday.
"In the interest of consumers, I now propose to reduce the BCD (basic customs duty) on mobile phones, mobile PCBA and mobile chargers to 15 per cent," she said. Earlier it was 20 per cent. The reduction is expected to benefit companies like Apple, which imports high-end iPhone Pro models.
Industry experts believe that the move could lead to a reduction of Rs 2,000-4,000 in the prices of premium handsets like iPhone Pro and Google Pixel. The reduced customs duty will benefit companies that import completely built units (CBU) or populated PCBA (printed circuit board assembly) or chargers.
Apple, which imports Pro series models, is expected to be a prime beneficiary of the reduced customs duty. They are expected to save around $35-50 million (Rs 250-418 crore) due to the revised taxes.
According to Neil Shah, VP for Research at Counterpoint Research, the 5% reduction in customs duty will allow Apple to either pass on the benefits to consumers or channels. "The 5% duty savings will benefit vendors who import phones from Apple, especially Pro series models, as well as newer vendors like Honor, Google or OnePlus who import premium devices at launch," Mr Shah said.
The move is seen as a boost to the Indian mobile phone industry, which has matured significantly over the last six years with a three-fold increase in domestic production and a 100-fold jump in exports.
Industry experts also believe the move could lead to rationalisation of prices in the 5G phone segment, particularly in the value-for-money segment of Rs 7,000-24,000.
The reduction in customs duty is part of a series of measures announced by the finance minister to boost the Indian economy. Other measures include a reduction in customs duty on gold, silver, leather goods and seafood, and an increase in customs duty on ammonium nitrate and non-biodegradable plastics.
Featured Video Of The Day
Katrina Kaif Poses With Paparazzi After They Ask For A Picture With Her
Nirmala Sitharaman Says Living Standard Of Common Man To Rise Steeply Explained: Blueprint To Upgrade Industrial Training Institutes Country On Track To Achieve 4.5% Fiscal Deficit, Says Finance Minister 4-Year-Old Boy Run Over By Speeding Creta In Mumbai, Teen Driver Arrested BJP Leader Who Lost To Priyanka Gandhi Challenges Election, Congress Reacts Judge Tells Story Of 2 Lawyers, One Became President, Other Chief Justice BJP Leader Who Lost To Priyanka Gandhi Challenges Election, Congress Reacts "Frontal Attack On Constitution": Congress Chief Slams Poll Rules Tweak 4 Dead As Ambulance Helicopter Crashes Into Hospital Building In Turkey Track Latest News Live on NDTV.com and get news updates from India and around the world.