India Removes Import Duties on Smartphone Components Amid Trade Tensions
India eliminates import duties on key smartphone components, aiming to boost local manufacturing and counter trade uncertainties linked to rising US-China tensions.
India has announced the removal of import duties on several key components used in smartphone production, as part of its efforts to enhance local manufacturing capabilities and secure a larger share of the global smartphone market.
The move, which was revealed by Finance Minister Nirmala Sitharaman, aims to support domestic production while helping companies such as Xiaomi and Apple to maintain competitive pricing.
The import duties, which had been levied at 2.5% on components such as printed circuit boards and camera parts, will no longer apply.
This policy shift is seen as an effort by India to navigate uncertainties in global supply chains, especially in the context of growing trade tensions between China and the United States.
The US, under former President Donald Trump, had proposed increasing import tariffs, which had raised concerns in countries heavily reliant on global supply chains.
India has rapidly grown as a key player in the global smartphone manufacturing market.
In the last six years, the country’s electronics production has doubled, reaching $115 billion in 2024. India is now the second-largest mobile phone producer in the world.
Apple led the smartphone revenue share in India for 2024, with 23% of the total market, followed closely by Samsung with 22%, according to research firm Counterpoint.
The removal of import duties is part of a broader strategy by the Indian government to strengthen its position in the global supply chain, particularly as trade relations between the US and China remain tense.
India hopes to capture a larger share of the market, particularly in light of the potential shifting of production away from China and Vietnam.
In addition to the removal of import duties on key components, the Indian government also introduced changes to so-called 'reverse duties,' where import duties on components or parts were higher than on finished products.
This shift aims to alleviate long-standing challenges in India’s tax structure, which had been criticized for making local manufacturing more difficult.
The move, which was revealed by Finance Minister Nirmala Sitharaman, aims to support domestic production while helping companies such as Xiaomi and Apple to maintain competitive pricing.
The import duties, which had been levied at 2.5% on components such as printed circuit boards and camera parts, will no longer apply.
This policy shift is seen as an effort by India to navigate uncertainties in global supply chains, especially in the context of growing trade tensions between China and the United States.
The US, under former President Donald Trump, had proposed increasing import tariffs, which had raised concerns in countries heavily reliant on global supply chains.
India has rapidly grown as a key player in the global smartphone manufacturing market.
In the last six years, the country’s electronics production has doubled, reaching $115 billion in 2024. India is now the second-largest mobile phone producer in the world.
Apple led the smartphone revenue share in India for 2024, with 23% of the total market, followed closely by Samsung with 22%, according to research firm Counterpoint.
The removal of import duties is part of a broader strategy by the Indian government to strengthen its position in the global supply chain, particularly as trade relations between the US and China remain tense.
India hopes to capture a larger share of the market, particularly in light of the potential shifting of production away from China and Vietnam.
In addition to the removal of import duties on key components, the Indian government also introduced changes to so-called 'reverse duties,' where import duties on components or parts were higher than on finished products.
This shift aims to alleviate long-standing challenges in India’s tax structure, which had been criticized for making local manufacturing more difficult.
