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India is now the second-largest producer of mobile phones in the world, with electronics manufacturing more than doubling in the last six years to reach $115 billion (about Rs. 99,41,100 crore) in 2024.
According to research firm Counterpoint, Apple dominated the Indian smartphone industry in 2024 with a 23% share of total revenue, followed by Samsung at 22%.
The list contained items for assembling mobile phones, including USB cables, printed circuit board assemblies, and pieces of camera modules, which were previously subject to a 2.5% tax.
The reduction will help India better handle a year of international trade that could be disrupted by tariff threats from U.S. President Donald Trump.
India is attempting to capitalise on trade tensions between the United States and China in order to boost its own share of global supply chains, while Trump thinks that his "America First" policies would attract more industrial facilities back to the United States.
According to a Reuters story from last year, India's IT ministry warned internally that if it did not decrease tariffs to entice multinational corporations, it would lose out to China and Vietnam in the competition for smartphone exports.
In order to rationalise and simplify tariffs for ease of trade, Sitharaman declared in her budget last year that the country's customs tax rate structure will be reviewed.
Removing "inverted duty structures," or situations where raw material or intermediary goods have higher tariffs than the final products they are used to make, was another goal of the duty review.
India's complex tariff system is frequently blamed for disputes and as a barrier to effective domestic production.
Prime Minister Narendra Modi's ambitious $500 billion (about Rs. 43,32,500 crore) electronics manufacturing objective will be closer thanks to the government's modification of the Basic Customs Duty (BCD). Proponents of domestic manufacturing like Dixon will benefit greatly from the progressive policy change that increased BCD on interactive flat panel displays from 10 percent to 20 percent and decreased open cell and other LCD/LED components to 5 percent, according to Prabhu Ram, VP-Industry Research Group (IRG), CyberMedia Research.
The reduction will help India better handle a year of international trade that could be disrupted by tariff threats from U.S. President Donald Trump.
India is attempting to capitalise on trade tensions between the United States and China in order to boost its own share of global supply chains, while Trump thinks that his "America First" policies would attract more industrial facilities back to the United States.
According to a Reuters story from last year, India's IT ministry warned internally that if it did not decrease tariffs to entice multinational corporations, it would lose out to China and Vietnam in the competition for smartphone exports.
In order to rationalise and simplify tariffs for ease of trade, Sitharaman declared in her budget last year that the country's customs tax rate structure will be reviewed.
Removing "inverted duty structures," or situations where raw material or intermediary goods have higher tariffs than the final products they are used to make, was another goal of the duty review.
India's complex tariff system is frequently blamed for disputes and as a barrier to effective domestic production.
Prime Minister Narendra Modi's ambitious $500 billion (about Rs. 43,32,500 crore) electronics manufacturing objective will be closer thanks to the government's modification of the Basic Customs Duty (BCD). Proponents of domestic manufacturing like Dixon will benefit greatly from the progressive policy change that increased BCD on interactive flat panel displays from 10 percent to 20 percent and decreased open cell and other LCD/LED components to 5 percent, according to Prabhu Ram, VP-Industry Research Group (IRG), CyberMedia Research.
