New Delhi: Finance Minister Nirmala Sitharaman announced a 15% reduction in the Basic Customs Duty (BCD) on mobile phones while presenting the GoI Budget for 2024-25. This reduction also applies to mobile Printed Circuit Board Assembly (PCBA) and mobile chargers.
Sitharaman highlighted the growth of the Indian mobile industry, noting a significant increase in domestic production and exports over the past six years. She stated that the duty reduction aims to make mobile phones and accessories more affordable for consumers.
The government expects this move to lower retail prices, boost demand, and increase accessibility to mobile technology. For the domestic industry, the reduced BCD is anticipated to enhance competitiveness and attract further investments by lowering import costs for essential components.
India’s smartphone market shipped 34 million units in the first quarter of 2024, marking an 11.5% year-over-year growth.
Additionally, Sitharaman proposed abolishing the angel tax for all classes of investors to support startups and boost innovation. This long-awaited move aims to drive more investments into startups, which play a crucial role in economic growth and job creation.
