Government Cuts Import Tax on Some Smartphone Parts Budget, Will Give Boost to Apple, Xiaomi

In this year’s budget, the import tax was removed by the central government on some parts of the smartphone. This will enhance the manufacturing of smartphones in the country. This will benefit companies like American devices maker Apple and Xiaomi of China. Electronics’ manufacturing in the country had increased more than doubled in the last six years to about $ 115 billion last year.

Apple had the highest 23 percent stake in the smartphone market in terms of revenue in the country last year. After this, South Korea’s smartphone maker Samsung was with about 22 percent stake. In the budget, the print circuit board used in smartphones, part of camera modules and USB cables of 2.5 percent have been removed. Donald Trump, who took over as the US President earlier last month, has warned to increase the tariff. The removal of import tax on the parts of smartphones will make India easier to strengthen its position in international trade.

In order to increase manufacturing in the US, the Trump -led government has prepared to take other measures along with increasing the tariff. India’s IT ministry warned that China and Vietnam may increase in smartphone exports if the tariff is not reduced. India’s stake in Apple’s manufacturing is also increasing continuously. In the last four years, the company has created about 1,75,000 employment opportunities in the country. Apple’s iPhone’s manufacturing in the country was $ 10 billion (about Rs 84,000 crore) between April and October of the current financial year.

However, China has a major stake in the company’s manufacturing. Apple’s 10 billion $ 10 billion fob manufacturing in India includes account sales, distribution, marketing, logistics and margin, this value is about $ 15 billion. In this total value, the export of iPhones is about seven billion dollars. The company’s wireless earphones airpods may start assembling in India soon. This would be a major step in Apple’s plan to increase manufacturing manufacturing out of China.