Government Cuts Import Duty on Phone Components Cut to 10% from 15%

In a strategic move to strengthen Mobile phone manufacturing industry in India, The Center has announced a significant cut in import duty on mobile phone components. Import duty has been reduced on parts used in mobile phone manufacturing. 10% from earlier 15%. The decision is in line with India’s broader objectives of enhancing its role in global supply chains and increasing exports.


India is steadily growing as a hub of mobile phone manufacturing, with many major global companies setting up their production facilities in the country. Despite this growth, a large portion of mobile phone components are still imported. High import duties on these components have already been a challenge for manufacturers, affecting the cost-effectiveness and competitiveness of locally produced mobile phones.

Fee Reduction Details

A recent government notification outlines import duty cuts for various mobile phone components. These include the battery cover, main lens, back cover, antenna, SIM socket and other mechanical accessories made of plastic and metal. The move is expected to reduce production costs for mobile phone manufacturers in India, making them more competitive domestically and internationally.

Impact on mobile manufacturing industry

The reduction in import duty is expected to provide a significant boost to the mobile manufacturing industry in India. This will enable manufacturers to obtain components at more competitive prices, thereby reducing the overall cost of production. This cost benefit can be passed on to consumers, potentially leading to lower prices of mobile phones in the Indian market.

Additionally, the move is likely to attract more foreign investment in the mobile manufacturing sector, as global companies may find it more viable to set up or expand their manufacturing operations in India. Increased local production will also contribute to employment generation and skill development in the sector.

Supporting India’s broader economic goals

The initiative is part of India’s larger economic strategy to establish itself as a major player in global supply chains, especially in the technology sector. By reducing dependence on imports and enhancing local manufacturing capabilities, India aims to increase its exports and establish a strong presence in the international market.

The government’s focus on developing the mobile manufacturing industry is also aligned with its “Make in India” initiative, which seeks to transform India into a global manufacturing hub. This duty cut can be seen as a step towards realizing this vision, encouraging domestic production and strengthening the economic resilience of the country.

Government cuts import duty on phone components, reducing it from 15% to 10%_40.1

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