The import duty on parts such as battery covers, main camera lens, back cover, other mechanical items of plastic and metal, GSM antenna, and other parts, has been reduced to 10%, the finance ministry said in a notification issued late on Tuesday.
The import duty on inputs used to manufacture these components has been cut to zero, the notification said.
“Duty cuts on import of mobile phone parts would help big global manufacturers to set up large scale mobile assembly lines in India, and substantially increase exports of mobile phones,” said Rajat Mohan, a director at tax consultancy firm MOORE Singhi.
Earlier this month, Reuters reported that India was considering import duty cuts on key components for producing high-end mobile phones.
The move will make India’s mobile phone manufacturing more competitive, the India Cellular and Electronics Association (ICEA) said in a statement.