On January 30, the government reduced import duties on components used in the manufacture of mobile phones from 15% to 10%.
Import duty-free parts include polyurethane foam products like battery covers, front covers, the center covers, main lens, back cover, antenna/gsm antenna of all technologies, polyurethane case /sealing joint and other sealing joints. Cases, seals/cases of PE, PP, EPS, PC and other individual polymers or combinations of polymers, SIM connectors, screws, other plastic mechanical elements and other metal mechanical elements.
Recently, the Global Trade Research Initiative (GTRI) in its report, urged the government to not cut import duties on electronic components used in making smartphones in the forthcoming Budget as the current tariff structure has already proven successful and changing them could harm local manufacturing. The GTRI had said that maintaining the current rates would help balance industry growth and long-term development in India's growing smartphone market.
The suggestion is in contrast to the demand of industry body India Cellular and Electronics Association (ICEA) that import duty cuts on mobile phone components can increase domestic production of handsets by 28 percent to USD 82 billion, boost exports, and support indigenous manufacturing.
The think tank said that Indian manufacturers "must pay" duties on smartphones sold within India, but exports should be exempted from such duties.