Mobile manufacturing in India: Here’s what the industry has to say on custom duty exemption on imports


In a bid to further boost mobile phone production in India, finance minister Nirmala Sitharaman announced that the central government will exempt customs duty on imports of certain parts used in mobiles phones.
In her Union Budget speech, Sitharaman said that mobile phone manufacturing in India has increased from 5.8 units in 2014-15 to 31 crore units valued at in 2022-23 financial year. The government will exempt customs duty on imports of certain parts such as camera lenses.
“As a result of the various initiatives of the government, including phased manufacturing programs, mobile production in India increased from 5.8 crore units valued at Rs 18,900 crore in 2014-15 to 31 crore units valued at Rs 2,75,000 crore in the last financial year,” Sitharaman said in her Union Budget speech.

Here’s what the industry leaders have to say:
Muralikrishnan B, president, Xiaomi India, said the Budget announcements reflected the government’s focus on making India a digital powerhouse.
“Customs duty reduction in select component parts used in mobile phones and televisions will help increase domestic value addition. This will have a positive impact on the domestic component manufacturing industry. Overall, multiple drivers, including income tax relief for the middle class and the 10 lakh crore government capex allocation announced today, will spur growth in consumption demand and industrial growth across sectors,” he said.

Sanmeet Singh Kochhar, vice president, India & MENA, HMD Global, says the Union Budget will directly impact device manufacturing in India.
“We welcome the promising Union Budget 2023 announced by honourable FM today. While the budget is futuristic with elements like Data Governance Policy, Centres of Excellence on AI, Green Growth, the conventional thrust areas of infrastructure have also received a big boost, which will directly impact device manufacturing in India. Mobile phone production in India has witnessed a phenomenal increase in recent years owing to policy support. The announcement to further reduce custom duty is another great step in this direction,” Kochhar added.
Manish Sharma, Chairman, Panasonic Life Solutions India and Chair for the FICCI Committee on Electronics & Manufacturing, said that the Union Budget 2023 heralds good news for both industry and the common man.
“It is encouraging to see reduction in custom duties for inputs/parts of certain electronic items like lithium Ion batteries, TV, Camera Lens will improve the feasibility for enhancing backward integration and subsequently enabling local manufacturing of electronics. We are also delighted to note that reduction in tax for both middle and upper class indicates more money in hand of taxpayer thus stimulating demand and drive consumption,” Sharma said.

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