The prices of mobile phones and import of mobile phone spare parts are likely to go up with the Union Budget 2018 increasing customs duty on both. In his Union Budget 2018, Finance Minister Arun Jaitley declared that customs duty on mobile phones imported from outside India will be increased to 20 per cent from the current 15 per cent. For manufacturers, who are importing mobile phone parts into the country, the duty will be hiked to 20 per cent from the existing 15 per cent.
Jaitley said the customs duty was being increased to boost jobs in the sector in India. He also said the government will introduce amendments to the customs act in order to make cross-border trade easier. Many companies are manufacturing phones in India but key parts like displays, processors, etc continue to be imported in India. China is the still world’s largest manufacturer when it comes to the entire supply chain for mobiles and mobile phone parts. Most players, be it Xiaomi or Huawei or Oppo and Vivo, are still assembling a majority of their phones in India.
Apple is also importing most iPhones in India wih only the smaller iPhone SE being manufactured in India. Besides mobile phones, the Union budget 2018 also raised customs duty on televisions go up to 15 per cent. The hike in mobile phone parts will also mean that getting repairs for some high-end devices could get more expensive as most of these are imported into the market.
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