The Indian Cellular Electronics Association, which represents domestic electronics manufacturers, called on the Union government to slash import duties for smartphone parts in the upcoming Union Budget, arguing that doing so would boost export volumes by allowing assembly firms to purchase a higher quantity of components. These tariffs are effectively higher than those in place in Vietnam and China, the ICEA pointed out in a press release.
The main reason this demand is being made now is that the market for phones assembled in India is saturating. “India’s domestic production [of smartphones] exceeds domestic demand, while simultaneously domestic smartphone demand except in the very high-end phones is slowing down,” the industry body said, pointing to a plateauing of demand for new handsets.
China and Vietnam have lower tariffs for smartphone components, and they also import these parts heavily from countries they have free trade agreements with, or do manufacturing in duty-free ‘bonded zones,’ bringing assembly units’ expenses on parts even further.
.jpg?w=600)
