The Indian government, on the eve of the 2024 budget, made a significant move expected to impact the smartphone industry positively. By deciding to reduce import duties on smartphone components, including battery covers, plastics, and metals, the government has signaled its intent to make smartphones more affordable and support the “Made in India” initiative.
Key Highlights on Mobile Price To Come Down in India.
Reduction in Import Duties:
Import duties on crucial smartphone parts have been cut to 5%, a substantial decrease from the previous rates. This reduction is likely to lower the costs of smartphone production, potentially leading to a decrease in the prices of smartphones in India.
Impact on Smartphone Prices:
The decision to lower import duties comes as a relief to both manufacturers and consumers. It is widely speculated that this move could result in significant price reductions for smartphones, making them more accessible to a broader segment of the Indian population.
Boost to ‘Made in India’:
The government’s emphasis on manufacturing smartphones within the country aligns with its broader ‘Made in India’ campaign. Encouraging local production is expected to not only reduce prices but also promote India as a manufacturing hub on the global stage.
High Import Duties Comparison:
India’s import duties on smartphones have been among the highest compared to countries like China, Mexico, Vietnam, and Thailand. This has particularly affected the pricing of premium smartphones, such as those from Apple, making them considerably more expensive in India.
The government’s push for local manufacturing has led to significant developments, such as Samsung deciding to manufacture laptops in its Noida plant. This move towards local production of electronic devices, including smartphones and laptops, is set to expand the market significantly.
Potential Market Growth:
With major players like Samsung and previously Dell setting up manufacturing units in India, the market for locally produced smartphones and laptops is expected to grow substantially. This not only benefits consumers through reduced prices but also contributes to the country’s economy.