Budget 2025: Preparations for Budget 2025 begin, will Make in India mobile phones become cheaper?

Almost all the smartphones sold in India now are made in India. The government's Make in India and PLI Scheme have helped a lot in promoting mobile manufacturing within the country. Even the export of Apple iPhone from India has increased manifold. In such a situation, when preparations for the general budget for the financial year 2025-26 have started inside the country, it is expected that mobile phones made inside the country may become cheaper in the coming days.

Companies engaged in phone manufacturing in India recently gave a presentation to the Ministry of Finance, in which they requested to reduce the import duty on many different parts used in the phone.

On which all is the tax cut to be done?

Phone manufacturers have demanded a cut in the import duty on mic, receiver, speaker and flexible printed circuit assembly used in phones. Currently, a tax of 15 percent is levied on these and the manufacturers want the government to reduce it to 10 percent. Not only this, they have also asked the government to make the parts of the Printed Circuit Board (PCB) duty-free, which is currently taxed at 2.5 percent.

According to ET's news, phone manufacturers have also placed demands before the government for subsidy on mandatory testing and certification, an extension of a 15 percent discount on corporate tax, and the creation of separate clusters for components.

Tax is still higher than in China and Vietnam.

India is working towards becoming a big player in the global supply chain of mobile, consumer electronics manufacturing. In such a situation, countries like China and Vietnam are a big challenge for it. In India, the components used in making mobile phones still attract a tax of 7 to 7.2 percent, which is higher than China and Vietnam.

India Cellular and Electronics Association put forward all these aspects before the government in a pre-budget discussion with the Finance Minister a few days ago. If the government accepts their demands, then we may get phones made in the country at a slightly cheaper price in the coming time.

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