Union Budget 2024: FM announces duty cut on mobile phones, PCBA and chargers.
| Photo Credit: Haider Ali Khan
Union Finance Minister Nirmala Sitharaman, in her Budget speech on July 23, announced a cut on basic custom duty (BCD) to 15% on mobile phones, mobile printed circuit board assembly (PCBA) and mobile chargers. Currently, the BCD on them is 20%.
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It is being speculated that this 5% window might impact the end pricing of smartphones in near future.
While presenting the Union Budget of 2024-25, the Finance Minister said, “With a three-fold increase in domestic production and almost a 100-fold jump in exports of mobile phones in the last six years, the Indian mobile industry has matured. In the interest of consumers, I now propose to reduce the basic customs duty [BCD] on mobile phone, mobile PCBA, and mobile chargers to 15%.”
Pankaj Mohindroo, chairman of India Cellular and Electronics Association (ICEA), an industry body of mobile and electronics industry, said, “We are impressed with its intent and direction focusing on enhancing manufacturing and export competitiveness. Hon’ble Finance Minister has also acknowledged the tremendous growth of mobile phone manufacturing and exports.”
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He added that ICEA recommended to reduce BCD on mobile phones, its PCBA and charger to 15%, which has been accepted.
The mobile and electronics industry is elated with the announcements and will go a long way to enhance manufacturing, exports and our competitiveness, said Mr. Mohindroo.
“The move to reduce the basic customs duty on mobile phones, PCBAs, and mobile chargers to 15% is a progressive step that highlights the maturity and growth potential of the Indian mobile industry. This reduction will not only benefit consumers but also bolster our domestic manufacturing capabilities, allowing India to compete more effectively on the global stage,” said Anand Dubey, CEO, Indkal Technologies.
The proposed exemptions on key components like oxygen-free copper and parts for connectors are also commendable steps that will further strengthen our electronics manufacturing ecosystem, added Mr. Dubey.
