India has taken a proactive step in enhancing its mobile manufacturing sector by slashing the import duty on components used in mobile phones from 15% to 10%. This move is a response to the industry’s persistent calls for reductions in duties on nearly a dozen components, seeking to minimize production costs and level the playing field against competitors in the region, particularly China and Vietnam.
The decision is anticipated to have a transformative impact on the Indian mobile industry. Mobile phone exports, estimated at $11 billion in FY23, could triple to $39 billion over the next two years if the government further reduces import tariffs on components and eliminates them in specific categories. This strategic move aligns with the industry’s goal of making mobile phones worth around $50 billion in FY24, a figure projected to rise to $55-60 billion in the coming fiscal year.
The surge in exports is predicted to witness substantial growth, reaching approximately $15 billion in FY24 and further escalating to $27 billion in FY25. As the government continues to incentivize domestic manufacturing and streamline trade policies, the Indian mobile industry is poised for significant expansion, reinforcing its position in the global market.
