Union Budget 2025: Smartphone Parts' Duty to be scrapped -

Union Minister Ashwini Vaishnaw | Photo credit: the Hindu

The basic customs duty of 2.5% imposed on certain smartphone components has been scrapped, following a glide path recommended by the electronics manufacturing industry. Mobile phones are fast emerging as India’s top expenses, Reaching $ 15.6 Billion Last Year. Slabs for components had been “rationalized”, it minister Ashwini Vaishnaw Told Presspersons after the Budget Presentation.

“The Rationalization of Tarifs on Key Inputs and Components Creates A More Competitive Cost Structure and Encourage Deeper Integration with Global Value Chains,” Said Pankaj Mohindroo, Chairaman of the Indian of the Indian Cell Association (icea), which represents electronics manufacturing and assembly firms.

‘Nuisance Duties’

The customs duties on components such as printed Circuit Board Assemblys (PCBAS), Camera Modules, Connectors, Wired HeadSets, Microphones, UsB Cabels, FingerPrint SCANNERS R. Mohindroo Had Complained Last Year, Adding that they did not contribute significant to promote domestic manufacturing. Reduction in tariffs for key meinraels was also welcome, Mr. Mohindroo said.

“Tariff protection was required in the infancy of manufacturing but now the tariffs are no longer valid in the mobile phones case,” The Icea Said. “The industry has reacted a gigantic scale of ₹ 60 billion in annual production.”

Additionally, Mr. Mohindro welcomed the changes in the income tax regime, saying that having zero income tax up to ₹ 12 lakh in annual income would boost demand for Electronics.