India has removed import duties on several key smartphone components, a move expected to benefit manufacturers like Apple and Xiaomi.
Finance Minister Nirmala Sitharaman announced the decision in the annual budget, aiming to bolster local production and attract global tech firms.
Strengthening India’s Mobile Industry
India has become the world’s second-largest mobile phone manufacturer, with electronics production surpassing $115 billion in 2024.
Apple led the Indian smartphone market last year with a 23% revenue share, followed closely by Samsung at 22%.
What Changed?
The tax cuts apply to printed circuit board assemblies, camera module parts, and USB cables, which were previously subject to a 2.5% import duty.
The move is part of India’s broader effort to simplify tariffs and remove trade barriers that have historically slowed domestic manufacturing.
A Global Trade Strategy
With U.S.-China trade tensions continuing, India sees an opportunity to attract manufacturers looking for alternative production hubs.
The Indian IT ministry had previously warned that high tariffs could push companies toward China and Vietnam.
By easing import costs, India aims to secure its position in the global smartphone supply chain while ensuring that more devices are produced locally.
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