Import duty cut to make mobile manufacturing competitive: ICEA

New Delhi, Jan 31

The India Cellular and Electronics Association (ICEA), the nation's top electronics manufacturing industry body, on Wednesday said the move by the government to slash import duty on parts used for manufacturing of mobile phones to 10 per cent is a critical and welcome policy intervention towards making mobile manufacturing competitive in the country.

The finance ministry said in a latest notification that the import duty on parts such as battery covers, main lens, back cover, other mechanical items of plastic and metal, among others, has been reduced to 10 per cent from 15 per cent.

The move will help companies like Apple to manufacture more of its high-end premium smartphones in the country.

"Building scale, riding on low input tariffs is key to transforming India into a global hub for electronics manufacturing and exports," said Pankaj Mohindroo, Chairman, ICEA.

Electronics has improved from the 9th position a few years ago to India’s 5th largest export in 2024.

"Mobiles constitute over 52 per cent of electronics exports thanks to the PLI scheme. This is the first industry to leapfrog out of import substitution to export-led growth within the last 8 years, Mohindroo added.

India's smartphone input tariffs are currently the highest among the competing manufacturing destinations.

Unless India can match China and Vietnam’s competitive tariff regime in addition to other factors which impact competitiveness, export growth will also start seeing a slowdown beyond the current fiscal, according to a latest report by the ICEA.