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The Indian government has introduced a 10% import duty on key smartphone components as part of its ongoing efforts to stimulate local handset and component manufacturing.
The new duty covers PCBs, camera modules and connectors and is likely to increase prices of mobile phones for companies that do not source these components locally.
In February, the government introduced a 20% basic customs duty on imports of full mobile phones, as well as duties of between 5% and 20% on components including LCD panels, PCBs for chargers, lithium batteries and other components including keypads, battery packs and antennae.
The report notes that currently more than 80% of phones sold in India are assembled locally, and sales volumes for mobile phones made in India are projected to improve 55% this year. Major contract manufacturers including Foxconn, Wistron, Flex and several Chinese handset makers have established local manufacturing to reduce costs.
But Samsung remains the only major brand to locally assemble PCBs, which account for around half the cost of manufacturing a handset, prompting the government to attempt to stimulate market growth.
