India’s electronics manufacturing has greater than doubled within the final six years to $115 billion (roughly Rs. 99,41,100 crore) in 2024, with the nation now changing into the world’s second-largest cell phone producer.
Apple led the India smartphone market with a 23% share in complete income throughout 2024, adopted by Samsung at 22%, in response to analysis agency Counterpoint.
The record included parts for cell phone meeting equivalent to printed circuit board meeting, elements of digital camera modules, and USB cables, which have been taxed at 2.5% earlier.
The cuts will assist India higher address a doubtlessly disruptive yr of worldwide commerce as a result of U.S. President Donald Trump’s tariff threats.
As Trump hopes for his “America First” insurance policies to lure extra manufacturing models again into the U.S., India is looking for to make the most of U.S.-China commerce tensions to extend its personal share of worldwide provide chains.
Internally, India’s IT ministry had warned it dangers dropping out to China and Vietnam within the smartphone exports race if it have been to not decrease tariffs to lure world firms, Reuters reported final yr.
Sitharaman, in her finances final yr, had introduced a evaluation of the nation’s customs responsibility charge construction to rationalise and simplify tariffs for ease of commerce.
The responsibility evaluation additionally geared toward eradicating the so-called inverted responsibility constructions or cases the place tariffs on uncooked supplies or intermediate items are larger than the ultimate merchandise they’re used to provide.
India’s difficult tariff construction is commonly cited as a deterrent for environment friendly native manufacturing and a reason behind disputes.
“The Union Budget 2025 brings excellent news for the business, together with the buyer electronics manufacturing sector. New reductions on BCD for essential parts signifies that localisation of elements equivalent to batteries and shows will rise,” Counterpoint Research Director Tarun Pathak informed Gadgets 360.
© Thomson Reuters 2025
