Business Standard

How duty hike may affect the strategy of global phone makers in India

There's a fear that global smartphone manufacturers might seriously consider shifting focus on other markets

phone making, mobile making, mobile manufacturing, mobile assembly

Importing finished products instead of assembling here will also attract duties which will ultimately be passed on to the consumer

Shubhomoy Sikdar
Moving ahead with its ambitious phased manufacturing programme (PMP), the government has hiked the import duty on some key mobile components from February 1, two months ahead of the scheduled date. Amid speculation about the government reconsidering its stand, handset manufacturers will find themselves paying more for importing display assembly, touch panels, cover glass assembly, vibrator motors and ringers from Friday. Experts say that even going back to the original cut-off date of April 1 or reconsidering a lowering of the duty would not help in the long run. This, they say, is primarily because there are no quick fixes

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First Published: Jan 30 2019 | 9:15 PM IST

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