Economy

Union Budget 2024-25: Mobile Phones to get cheaper, as FM Nirmala Sitharaman reduces basic customs duty to 15%

Finance Minister Nirmala Sitharaman announced a reduction of 15 per cent in the Basic Customs Duty (BCD) on mobile phones while presenting the Union Budget for the fiscal year 2024-25 in Parliament on Tuesday.

Along with mobile phones, the BCD on mobile Printed Circuit Board Assembly (PCBA), and mobile chargers will be lowered to 15 per cent.

Sitharaman said, “With a threefold increase in domestic production and almost a 100-fold jump in exports of mobile phones over the last 6 years, the Indian mobile industry has matured. In the interest of consumers I now propose to reduce the Basic Customs Duty (BCD) on mobile phones, mobile Printed Circuit Board Assembly (PCBA) and mobile charger to 15 per cent.”

The reduction in BCD is expected to make mobile phones and related accessories more affordable for consumers.

By lowering the cost of imported components and finished products, the government aims to pass on the benefits to end-users, potentially leading to reduced retail prices.

This move is anticipated to stimulate demand and increase the accessibility of mobile technology across different segments of the population.

For the domestic mobile phone industry, the reduced BCD is likely to enhance competitiveness and encourage further investments.

Manufacturers can benefit from lower import costs for essential components, thereby improving their production efficiency and profit margins.

According to the Worldwide Quarterly Mobile Phone Tracker by International Data Corporation, India’s smartphone market shipped 34 million units in the first quarter of 2024.

This represented a year-over-year growth of 11.5 per cent, marking the third consecutive quarter of increased shipments.

Earlier, to bolster the Indian start-up eco-system, boost the entrepreneurial spirit and support innovation, Finance Minister Nirmala Sitharaman proposed to abolish the so-called angel tax for all classes of investors.

This was a proposal from the industry for a long time, and this announcement will drive more investments towards startups in particular. Startups function as engines of economic growth, playing a crucial role in generating new jobs, ideas, products, and services.

ANI

Ani service

Recent Posts

Would be my pleasure to welcome PM Modi for G7: Former Canada MP Chandra Arya calls India “indispensable partner”

Former Member of Parliament of Canada, Chandra Arya, has said it would be his pleasure…

2 hours ago

UK Foreign Secretary Lammy to meet PM Modi; to discuss bilateral economic and migration partnership

UK Foreign Secretary David Lammy will meet with Prime Minister Narendra Modi on his second…

2 hours ago

“We can control any situation”: Gujarat Health Minister calls Omicron ‘not serious’, says all arrangements in place

Gujarat Health Minister Rushikesh Patel on Saturday noted that the state is fully prepared for…

3 hours ago

India is fifth largest economy, their presence at G7 meeting ‘makes sense’: Canada PM

Canadian Prime Minister Mark Carney on Friday (local time) said that G7 countries will hold…

5 hours ago

China ramps up military activity near Taiwan: 34 aircraft, 8 naval vessels, 1 ship detected

Taiwan's Ministry of National Defence detected 34 sorties of Chinese aircraft, eight Chinese naval vessels…

7 hours ago

“India being invited to G7 Summit, our PM reaching out for this is fantastic development”: Canadian lawmaker

By Ravi Khandelwal Canada needs to have a better relationship with India and move forward…

7 hours ago