NEW DELHI: Finance Minister Nirmala Sitharaman announced an additional reduction in basic customs duty (BCD) rates on several mobile phone components during her presentation of the Union Budget 2024-25.
The minister proposed a 15% cut in BCD for mobile phones, Mobile Printed Circuit Board Assembly (PCBA), and mobile chargers. The minister, while highlighting the maturity of the Indian mobile industry, noted a 100% increase in production and exports over the last six years.
This move is aimed at further boosting India's share in the global mobile market.
“With a three-fold increase in domestic production and an almost 100% jump in exports in the last six years, the Indian mobile industry has matured. In the interest of consumers, I propose to reduce the BCD on mobile phones, Mobile PCBA and mobile chargers by 15%,” the FM said.
The Economic Survey released a day earlier, mentioned that India exported 31% of its total smartphones manufactured in the country to various countries in FY24. India has become the world's sixth-largest smartphone exporter in 2022, up from the 23rd position in 2014.
Exports now drive growth in the sector, with a 42.2% increase in FY24 enabling smartphones to rank among India's top five export items within six-digit HS product categories.
According to the Commerce Ministry data, India exported smartphones worth $15.6 billion in FY24, marking a 42% growth from the previous fiscal year.
Apple and Samsung led in exports, with Apple assembling new iPhones worth over Rs 1 lakh crore in India and exporting devices worth Rs 65,000 crore to other countries. Samsung also significantly contributed to India's smartphone export sector.
India's share of global electronics exports improved from 0.63% in 2018 to 0.88% in 2022, raising its global ranking from 28th to 24th. The share of electronics goods in India's merchandise exports increased from 2.7% in FY19 to 6.7% in FY24.