GoKawiilAs reported by Reuters, India continued its push to become a larger electronics manufacturing hub today by removing import duties on select parts used in smartphones and other devices. Here are the details.
India cuts electronics tariffs
According to the report, India has removed tariffs of 7.5% and 5% on several key parts used in the manufacture of mobile phones and other electronic devices.
From the report:
Items include key parts for producing wireless charging modules for mobile phones, displays for medical devices and automobiles, and lithium-ion cells.
Reuters says this is part of India’s plan to boost local electronics manufacturing to US$500 billion over the next four years, with these exemptions valid until March 31, 2029.
For Apple, the move could further accelerate its push to expand iPhone production in India, as the company works to reduce its reliance on China.
Here’s Manoj Mishra, a partner at business consultancy Grant Thornton Bharat, who spoke to Reuters on what the tariff cuts could mean:
“This should boost cost competitiveness, domestic value addition and localisation of high-value smartphone and electronics manufacturing.”
He also added that “exemption for lithium-ion cell manufacturing may spur investment in domestic battery production for electronics and electric mobility.”
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