Finance Minister Nirmala Sitharaman said that in this financial year, it will now impose 2.5 per cent duty on the custom duty levied on import of parts of some mobile phones and chargers. It is expected that this will have a direct impact on the prices of mobile phones. May be the price of mobile phone in India may increase in the coming time. However, local manufacturers will get a boost after this decision. Companies can focus on producing parts in India by reducing imports.
Sitharaman says that the duty on the PCBA (printed circuit board assembly) of the charger or adapter has been increased from 10 percent to 15 percent. However, except PCBA, all other parts of this tariff will be subject to 10 percent rate further.
As we said, the increase in customs duty incurred in imports will give a boost to Sakar’s Make in India program. Companies will focus on local production more than imports. India had also announced the PLI scheme for mobile phones last year, in which the government said that under this scheme, incentives ranging from 4 percent to 6 percent will be given for five years on becoming mobile in India.
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