In a significant move to boost its domestic smartphone industry and make devices more affordable for consumers, India has announced a 15% reduction in the basic customs duty on smartphone components. This tax cut, part of the 2024 Union Budget, is set to have a substantial impact on the pricing of Made in India smartphones.
The reduction specifically targets parts used in phone assembly rather than completely built units, ensuring that the benefits will primarily affect devices manufactured within the country. This strategic decision aligns with India’s long-standing “Make in India” initiative, launched nearly a decade ago by the Modi administration to promote local manufacturing and technological advancement.
Analysts predict that this tax reduction will not only make smartphones more accessible to Indian consumers but also strengthen the country’s position as a global smartphone manufacturing hub. The move is expected to attract increased global investments and boost local assembly operations, particularly benefiting devices priced below INR25,000 (approximately $300).
As India continues to push for greater digitalization and smart technology adoption among its population, this tax reduction represents a significant step towards achieving those goals. Popular smartphones like the OnePlus Nord 4, Samsung Galaxy M35, and Xiaomi Redmi 13 5G, which are already part of the “Make in India” campaign, are likely to see price reductions as a result of this policy change.
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