In a move that may have multiple connotations, the government has decided to slash import duty, amounting to a total of, 29.44 per cent, on accessories like batteries, adapters, chargers, wired headsets and speakers to 12.5 per cent. This duty was levied by the finance minister in the budget, but handset makers such as Samsung, Lenovo, LG, and others have be lobbying with the government to reduce the import duty on these items. The finance minister has finally relented and he has recently informed the parilament about this decision to slash import duties on accessories of smartphones.
All global manufacturers who have set up their mobile manufacturing unit under the ‘ Make in India’ initiative has been telling the government that they most import the accessories of smartphones and this can cost upto 20 per cent of smartphone costs. Some experts feel that this can be a dettrent for domestic smartphone accessories manufacturers. After all there are some mobile phone battery manufcaturers who will feel hard done by this rolling down of import duty on these accessories.
The Indian government has been encouraging manufacturers to come and make in India but it also has to be very cautious when it opens doors for importing as it will not encourage manufacturing in totality.
By Atanu Kumar Das
