Smartphones in India will become cheaper | TechTree.com

Smartphones in India will become cheaper

Smartphones and smartphone accessories will become cheaper in India due to duty concessions.

 

India’s Finance Minister announced the Union Budget 2022 – 2023 early this week and while the budget didn’t include any reduction in taxes for salaried employees, it did highlight duty concession on some wearables and mobile phone parts. 

This means that smartphone makers will pay less tax on importing parts used in the manufacturing of devices.

“Duty concessions are being given to parts of the transformer of mobile phone chargers and camera lens of mobile camera module and certain other items. This will enable domestic manufacturing of high growth electronic items.” Nirmala Sitharaman, Finance Minister. 

The finance minister believes the duty concession on mobile parts will boost domestic manufacturing of electronic items. Phones will certainly be cheaper for the customer, but not by a huge margin.

Given the high demand for 5G phones in India, components like chipsets used had to be imported. But because of Budget 2022, the cost of making a smartphone will be less.

However, 5G recharge will be expensive initially, and 5G in the middle of 2022 after the government finishes auctioning 5G spectrum.

Most smartphone manufacturers in India (Realme, Xiaomi, Apple, Oppo Samsung, OnePlus, Vivo) are driven by the make in India initiative.

Making in India lowers manufacturing costs by a large margin in comparison to importing parts, hence making technology more feasible and accessible to the masses.

The Budget 2022 also outlined initiatives to boost local manufacturing of electronics like wireless and wired earphones, fitness bands and smartwatches.

“Custom duty rates are being calibrated to provide a graded rate structure to facilitate domestic manufacturing of wearable devices, hearable devices, and electronic smart meters.” - Nirmala Sitharaman, Finance Minister

Nirmala Sitharaman also announced more information on digital payments and banking, e-passports, and EV battery swapping.


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