US tariffs: Mobile firms hedge bets, seek incentives for India operations

Global mobile device players said they will be looking at alternatives if the duties stay at existing levels

Global mobile device makers assembling in India will be seeking financial incentives from the government to ensure they remain competitive amid the 27 per cent duty slapped on their exports to the US.

 

Otherwise, they may have to hedge their bets by shifting new capacity to other countries — where duty imposed on US exports is lower.

 

A top executive of a mobile company said: “Indian tariffs on components add up to 6-8 per cent of the bill of materials even after reduction in the last Union Budget. Even if a company is doing 50-50 between domestic sales and exports,