Budget 2024: Modi government has presented the first budget of its third term. Finance Minister Nirmala Sitharaman has made many big announcements in this budget, in which a big relief has also been given regarding mobile phones. Mobile phone manufacturing in India has grown rapidly in the last few years.
To promote manufacturing in India, the government has announced reduction in custom duty. This cut has been made on mobile phones and many other parts. This will have a positive impact on the industry and may also reduce the price of phones.
What was announced in the budget?
In Budget 2024, the government has reduced the basic custom duty on mobiles and accessories to 15 percent. The Finance Minister said in his budget speech that the Indian mobile industry has now become mature. Along with this, he has announced to reduce the basic custom duty.
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Basic custom duty has been reduced on mobile phones, mobile PCDA (Printed Circuit Design Assembly) and mobile charging. Basic custom duty on all these parts has been reduced to 15 percent.
What will be the effect of this change?
Due to reduced custom duty, manufacturing cost will be reduced, which will benefit the consumers. In simple words, this will reduce the price of smartphones. Reduction in BCD on mobile PCDA and charger will reduce the overall production cost, due to which the devices can be made more affordable.
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With mobile phones and accessories becoming cheaper, more and more people will be able to use them. With this, consumers will be able to upgrade to new technology. Due to this announcement, local production will increase. That means manufacturing of phones will increase in India. Consumers will get to see more and more brands, which will increase competition in the market. Consumers will benefit directly from this.