Guwahati: Finance Minister Nirmala Sitharaman recently unveiled a reduction in customs duty rates applicable to mobile phones, mobile Printed Circuit Board Assemblies (PCBAs), and mobile chargers. The duty rate has been lowered from the existing 20 percent to 15 percent, signalling a proactive step towards fostering growth and competitiveness in the sector.
During her budget speech, Sitharaman underscored the remarkable strides made by the Indian mobile industry in recent years. She cited a noteworthy threefold increase in domestic production and an impressive 100-fold surge in mobile phone exports over the past six years. These statistics underscore the industry's maturation and its ability to scale production while enhancing global market presence.
Zamir Hussain, a sales and marketing executive at Electrocity Guwahati, offered insights into the potential impact of the customs duty reduction. He suggested that immediate price reductions in current models might not be substantial, as existing stocks would likely be sold at previous price points. "However, forthcoming models and festive season sales on prominent e-commerce platforms like Flipkart and Amazon could witness significant price adjustments. This could be complemented by attractive card offers and financial partnerships, potentially making smartphones more accessible to a wider consumer base", he noted.
Highlighting a broader market trend, Hussain mentioned a growing preference for online purchases of mobile phones, driven by substantial discounts available through e-commerce channels compared to traditional offline retail outlets.
The reduction in Basic Customs Duty (BCD) on mobile phones and components is anticipated to stimulate further expansion of domestic manufacturing capabilities, bolster exports, and potentially lower retail prices for consumers across India.
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