The think tank said that Indian manufacturers “must pay” duties on smartphones sold within India, but exports should be exempted from such duties
According to a GTRI assessment released on Monday, the government shouldn’t lower import taxes on electronic components used to make smartphones in the upcoming budget because the current tariff structure has already shown to be effective and modifying it could hurt domestic production.
According to the Global Trade Research Initiative (GTRI), keeping tariffs at current levels will support long-term development in India’s expanding smartphone market while balancing industrial expansion.
“Right now, India imposes taxes ranging from 7.5% to 10% on imported smartphone parts. These levies ought to be kept in the budget. It stated that the current rate of levies encourages duty-free imports for the purpose of producing goods for export and that the budget should not lower the import taxes on parts used to produce cellphones.
On February 1, the budget is expected to be unveiled.
The proposal runs counter to the industry group India Cellular and Electronics Association (ICEA), which claims that lowering import duties on parts for mobile phones can help strengthen domestic manufacturing, enhance exports, and raise domestic handset production by 28% to $82 billion.
According to the think group, exports should be free from tariffs that Indian manufacturers “must pay” on smartphones sold in the country.
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