India scraps import duties on key mobile phone components to boost manufacturing
India has removed existing import duties of 7.5% and 5% on certain components used in the manufacture of mobile phones and other electronic devices. The decision is aimed at reducing input costs for manufacturers and strengthening India’s position as a global electronics assembly hub. Companies such as Apple and Xiaomi are expected to benefit directly from the lower tariff burden on their supply chains. The move aligns with broader “Make in India” and production-linked incentive (PLI) objectives by making domestic assembly more cost‑competitive. It also comes amid global supply-chain diversification away from China, where India is trying to attract more high-value electronics manufacturing. The policy change may have short‑term revenue implications but is expected to be offset by higher production volumes and employment over time. This step is part of a series of calibrated tariff adjustments undertaken by the government in recent years in the electronics sector.
Try the question
India recently scrapped import duties on some parts used to make mobile phones that were earlier taxed at which rates?
Answer: (b) 7.5% and 5%
The correct answer is (b) 7.5% and 5%.