India Slashes Customs Duty on Mobile Phones to 15% - HUGE Boost for Local Manufacturing

In a move aimed at boosting local manufacturing, the Indian government has proposed a reduction in customs duty on mobile phones and related parts to 15%. Announced by Finance Minister Nirmala Sitharaman in the Union Budget 2024, this reduction is expected to make domestic production of mobile phones more attractive and cost-effective.

Key Customs Duty Changes in Union Budget 2024

Here’s a closer look at some of the significant customs duty revisions:

1. Mobile Phones and Accessories: The customs duty on mobile phones, related parts, and chargers has been slashed to 15%. This is a major step towards reducing manufacturing costs and encouraging more companies to set up production units in India.

2. Critical Minerals: Customs duty on 25 critical minerals has been completely exempted. This is aimed at supporting industries that depend heavily on these essential minerals.

3. Aquaculture Inputs: Customs duty on brood stock, shrimp, and fish feed has been cut to 5%. This reduction is expected to benefit the aquaculture sector, making it more competitive.

4. Down-Filling Material: The duty on real down-filling material from duck or goose has been lowered. This change is particularly advantageous for the textile and apparel industries.

5. Spandex Yarn: For the manufacture of spandex yarn, the customs duty has been reduced to 5% from 7.5%. This is likely to support the textile industry by lowering production costs.

6. Raw Hides and Leather: The export duty structure on raw hides, skin, and leather has been simplified, which should streamline trade and benefit the leather industry.

7. Precious Metals: Customs duty on gold and silver has been reduced to 6%, and on platinum to 6.4%. This reduction is expected to give a boost to the jewelry industry.

8. Industrial Materials: There will be no customs duty on ferro nickel and blister copper, as well as oxygen-free copper used in the manufacture of resistors. This exemption is intended to support the electronics industry.

9.  Ammonium Nitrate: The duty on ammonium nitrate has been raised to 10% from 7.5%, aimed at enhancing the domestic chemical industry.

10. PVC Flex Banners: Customs duty on PVC flex banners has been increased to 25% from 10%. This is intended to support local manufacturers of these products.

11. Telecom Equipment: The customs duty on certain telecom equipment has been raised to 15% from 10%, encouraging local production.

The Union Budget 2024 introduces a range of reforms designed to support various sectors of the economy. The reduction of customs duty on mobile phones to 15% is particularly significant, as it aims to make India a global hub for mobile phone production. Along with other duty revisions, these changes are expected to stimulate economic growth and boost self-reliance across multiple industries.