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.
