smartphones to get cheaper

In her 2024 budget speech, Finance Minister Nirmala Sitharaman revealed a significant tax reduction on mobile custom duty.

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The basic custom duty (BCD) on mobile phones, mobile PCBs, and chargers has been reduced by 15%.

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This move is expected to make smartphones more affordable and boost domestic manufacturing.

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Sitharaman highlighted the maturity of the Indian mobile industry in her budget speech.

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The tax cut will benefit original equipment manufacturers (OEMs) by lowering production costs within India.

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The government had previously made strides to support mobile phone manufacturing by reducing import taxes on key components like camera lenses

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It had extended a lower tax rate on lithium-ion batteries, which are crucial for both mobile phones and electric vehicles.

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Interestingly, this year’s budget speech did not address artificial intelligence (AI) or 5G technology.

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Last year’s budget saw announcements for three Centres of Excellence for AI.

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These centres were intended to advance AI applications in sectors like agriculture, healthcare, and sustainable cities.

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Similarly, last year’s budget outlined plans to establish 100 labs in engineering institutions to explore 5G applications.

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The onus now lies on OEMs how they incorporate the reduction in custom duty and pass the benefits to buyers.

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But surely, the move paves way for more affordable smartphones in the market in the days to come.

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