Budget 2024: India Cuts Mobile Phone Import Duty, Raises Telecom Equipment Duty

Budget 2024: Govt reduces mobile custom duty by 15% paving way for more affordable smartphones

In her 2024 budget speech, Finance Minister Nirmala Sitharaman revealed a significant tax reduction of up to 15 percent on mobile phones, mobile PCBs, and chargers. This move is expected to make smartphones more affordable and boost domestic manufacturing. Sitharaman highlighted the maturity of the Indian mobile industry and emphasised that this tax cut will benefit original equipment manufacturers (OEMs) by lowering production costs within India. The government had previously made strides to support mobile phone manufacturing by reducing import taxes on key components like camera lenses and extending a lower tax rate on lithium-ion batteries, which are crucial for both mobile phones and electric vehicles. Interestingly, this year's budget speech did not address artificial intelligence (AI) or 5G technology. In contrast, last year's budget saw announcements for three Centres of Excellence for AI, aimed at fostering research and development in collaboration with industry leaders. These centres were intended to advance AI applications in sectors like agriculture, healthcare, and sustainable cities. Similarly, last year's budget outlined plans to establish 100 labs in engineering institutions to explore 5G applications. These labs were set up to facilitate innovations in areas such as smart classrooms and precision farming, though no updates were provided in this year's speech.

Budget 2024: Basic customs duty on mobile phones and chargers reduced to 15% - Times of India

Finance Minister Nirmala Sitharam presented the Union Budget 2024 on Tuesday (July 23) and proposed changes in the basic customs duty (BCD) on mobile phones, mobile PCBA and mobile chargers. She proposed the BCD on these commodities will be 15%. "With a three-fold increase in domestic production and almost 100-fold jump in exports of mobile phones over the last six years, the Indian mobile phone industry has matured.In the interest of consumers, I now propose to reduce the BCD on mobile phone, mobile PCBA and mobile charger to 15%," said Sitharam during her budget speech. "To increase value addition in the domestic electronics industry, I propose to remove the BCD, subject to conditions, on oxygen-free copper for manufacture of resistors. I also propose to exempt certain parts for the manufacture of connectors," she said. FM announces investments in R&D Apart from this, Sitharam made various announcements to power innovation and Research and Development. She announced the establishment of Anusandhan National Research Fund for basic research and prototype development. The finance minister also announced a financing pool of Rs 1 lakh crore to spur private sector-driven research and innovation at commercial scale. Additionally, a venture capital fund of Rs 1,000 crore to expand space economy by 5 times in the next 10 years. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

Tech industry cheers budget 2024 for mobile tax cuts, but TV brands feel neglected

In a noteworthy move to stimulate India's electronics sector, Finance Minister Nirmala Sitharaman unveiled the 2024 Union Budget with a focus on reducing the Basic Customs Duty (BCD) on mobile phones, mobile printed circuit board assemblies (PCBA), and chargers. The new budget slashes the BCD by up to 15 percent, aiming to make smartphones more affordable and bolster local manufacturing. Sitharaman's announcement is a pivotal step in supporting the "Make in India" initiative, which is expected to lower production costs for original equipment manufacturers (OEMs) and promote domestic manufacturing. This reduction in import duties comes after last year's similar tax cuts on key components such as camera lenses and lithium-ion batteries, which also aimed to boost the local production of smartphones and electric vehicles. Arijeet Talapatra, CEO of Transsion India, echoed similar sentiments. "Transsion India welcomes the Ministry of Finance's decision to reduce the basic customs duty from 20% to 15% on mobile phones, mobile PCBA, and chargers. This policy change will benefit both manufacturers and consumers, fostering a more competitive smartphone market and strengthening our position in the global market," Talapatra remarked. He expressed confidence that the new measures will make smartphones more affordable and align with the 'Make in India' initiative. The budget also includes provisions for increased duty on PCBAs for specific telecom equipment by 10-15%, which reflects the government's commitment to strengthening local manufacturing capabilities in crucial sectors. Tilak Raj Dua, Director General of the Digital Infrastructure Providers Association (DIPA), praised the focus on enhancing Digital Public Infrastructure (DPI) as a means to accelerate India's economic growth. However, the 2024 budget left some sectors expecting more. A. Gururaj, Managing Director of Optiemus Electronics Ltd., noted the positive impact of the tax cuts and the emphasis on manufacturing but expressed concern that certain sectors, such as television manufacturing, were overlooked. Gururaj also highlighted the importance of skilling initiatives and employment incentives in supporting the expanding electronics manufacturing industry. In contrast to last year's budget, which featured significant announcements for artificial intelligence (AI) and 5G technology, this year's budget did not address these areas directly. Rajiv Lamba, Founder of SurveySensum, pointed out that while the budget includes positive elements like the abolition of angel tax and support for deep tech innovation, it lacks specific initiatives for ongoing AI development. Lamba emphasised the need for targeted upskilling programs and accessible funding for AI startups to drive future growth. Arjun Bajaj, Director at Videotex, expressed mixed feelings about the budget. While acknowledging the budget's emphasis on manufacturing and infrastructure, Bajaj noted that the television manufacturing sector felt somewhat neglected. Despite this, he remained hopeful that the focus on skilling and workforce development would foster future growth in the manufacturing sector.

Budget 2024: Finance Minister increases duty on telecom equipments from 10% to 15% - Times of India

In a move that has drawn mixed reactions from the telecom industry, Finance Minister Nirmala Sitharaman announced changes to customs duties on telecom equipment in the Union Budget 2024-25. The government aims to boost domestic manufacturing while balancing the needs of telecom operators rolling out 5G services. Sitharaman proposed increasing the Basic Customs Duty (BCD) from 10% to 15% on Printed Circuit Board Assembly (PCBA) for specified telecom equipment.This decision is intended to incentivize local production and reduce dependence on imports. However, the announcement comes in contrast to industry expectations. The Cellular Operators Association of India (COAI) had been advocating for a reduction in customs duties to zero, with a gradual increase based on the development of the domestic manufacturing ecosystem. COAI Director-General SP Kochhar had previously highlighted the financial burden on telecom companies due to the gradual increase in customs duties over the past 5-6 years. He emphasised that the current 20% duty was significantly impacting the rollout of 5G services in India. The industry body had urged the government to exempt certain telecom equipment from customs duties to alleviate cost challenges associated with deploying critical infrastructure. Kochhar stressed the need for duty reductions on both 4G and 5G network products until high-quality equipment becomes available domestically at competitive prices. The budget announcement reflects the government's continued focus on its "Make in India" initiative, aiming to strengthen domestic manufacturing capabilities in the telecom sector. However, it also raises concerns about potential short-term impacts on 5G rollout plans and overall network expansion. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.