The government has increased the import duty on foreign-market demand for mobile phones and chargers to boost domestic industries. Finance Minister Nirmala Sitharaman said that the government has decided to review the exemption on import duty being given on 400 items including parts used in manufacturing mobile phones.
He said that our import duty policy should have two objectives. One is to give a boost to the domestic manufacturing sector and secondly to give India an effective position in the global value chain (GVC) and increase exports. Now our emphasis is to make access to raw materials easier and to increase value in imports.
The government has imposed an import duty of 2.5 percent from April 1 on the mobile printed circuit board assembly (PCBA), also known as motherboard, parts and battery packs used to make camera modules, connectors, lithium batteries. Similarly, the government has increased the tariff on the Charger's PCBA from 10 percent to 15 percent.
This rate is applicable only from February 2 and withdrawal of concessions on other charger parts of Charger has been reduced to 10% from February 2. Tarun Pathak, Associate Director, Counterpoint Research, said that the prices of mobile and charger may increase for a short time. At this time, due to local supply of most of the bridges is not expected to have much effect.
Along with this, the government has withdrawn the concessional duty on Ink Cartridge, Ribbon Assembly, and Assembly Gear used in computer printers.