India slashes import duties, Apple stands to gain
The move aligns with Prime Minister Narendra Modi’s vision of making India a major hub for smartphone manufacturing, competing with countries like China and Vietnam.
India announced reduced import duty on mobile phones and key components from 20% to 15%. During the 2024-25 budget presentation, Finance Minister Nirmala Sitharaman stated that India will be lowering its import taxes on mobile phones, printed circuit board assembly (PCBAs), and mobile chargers to pass the benefit on to the consumers.
That policy benefits Apple, which imports its high-end Pro and Pro Max iPhone models from abroad despite increasing local production in the country by contracting to manufacturers like Foxconn and Tata Group. Co-founder of Counterpoint Research, Neil Shah noted that 10-12% of Apple iPhones are imported to India annually, and a 5% tax reduction could save Apple $35-50 million per year. Shah added that Apple will also benefit directly from mobile models that are still importing PCBAs. He also noted that reducing import duties will benefit new market entrants, calling it a game-changer.
Why does it matter?
The policy is well aligned with Prime Minister Narendra Modi’s vision of promoting India as a smartphone manufacturing centre, leading companies like Apple, Xiaomi, Samsung, and Vivo to expand local operations. Previously, India’s deputy IT ministry had advocated for reducing import taxes on mobile phones to compete with China and Vietnam as smartphone export hubs.
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