India scraps import duty on select smartphone and electronic components
The Union government has removed the 7.5% and 5% import duties on certain components used in manufacturing mobile phones and other electronic devices, according to a notification reported in the last 24 hours.[1] The move is aimed at boosting domestic value addition and supporting India’s position as a global smartphone manufacturing hub. It is expected to benefit major manufacturers such as Apple, Xiaomi, and domestic contract manufacturers that assemble phones in India.[1] The step aligns with the broader Production-Linked Incentive (PLI) strategy and attempts to keep India competitive against Vietnam and China in electronics exports. Industry analysts say the duty cut could lower production costs and potentially ease retail prices over time, though the immediate impact on consumers may be limited. The measure also comes amid concerns over global supply chain disruptions and efforts to reduce dependence on a few countries for critical components. The policy is likely to be watched closely by WTO partners and trading competitors as part of India’s evolving industrial and trade policy mix.
Try the question
The recent government decision on smartphone manufacturing components involves which key measure?
Answer: (b) Scrapping import duty on some components used in mobile phones and electronics
The correct answer is (b) Scrapping import duty on some components used in mobile phones and electronics.