Budget 2021: Mobile parts customs duty hiked by 2.5 %; phones to get more expensive
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New Delhi: In her budget speech for 2021-22 on Monday in parliament, finance minister Nirmala Sitharaman announced an increase of customs duty on parts of mobile chargers and some components of mobile phones.
While the customs duty hike is aimed at aiding domestic manufacturing, at another leve, i.e. that of current prices of mobile phones, it will result in a price rise. And the overall percentage of parts and accessories of mobile phones made in India, is said to be very low.
However, Sitharaman added that 'domestic electronic manufacturing has grown rapidly. We are now exporting items like mobiles and chargers.'
Under the production-linked incentive (PLI) scheme introduced by the government, foreign companies have been encouraged to manufacture their electronic products in India, and reduce imports. Under the provision, foreign producers Samsung, Foxconn Hon Hai, Petatron, Rising Star and Wistron had been given approval for manufacturing of mobile phone devices in India.
