India removes import duties to boost mobile phone production
India’s electronics production has surged to $115 billion, making it the world’s second-largest mobile phone manufacturer.
India has scrapped import duties on key mobile phone components to support local manufacturing, Finance Minister Nirmala Sitharaman announced in the annual budget. The move benefits major firms such as Apple and Xiaomi and is expected to strengthen India‘s position as a global smartphone manufacturing hub. The country has more than doubled its electronics production in six years, reaching $115 billion in 2024, making it the world’s second-largest mobile phone producer.
Key components such as printed circuit board assemblies, camera module parts, and USB cables, which previously faced a 2.5% tax, are now exempt from import duties. The cuts aim to enhance India’s competitiveness against China and Vietnam in the smartphone export market. The Indian IT ministry had previously warned that maintaining high tariffs could cause India to fall behind in the race to attract global companies.
Sitharaman’s budget follows a broader review of India’s customs duty structure to simplify trade and remove tariff inconsistencies. With global trade uncertainty driven by United States President Donald Trump’s tariff policies, India is positioning itself to capitalise on shifts in global supply chains. Experts believe that a more efficient tariff system will encourage further investment in local production and exports.
About author
DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.