In a strategic move to enhance its position as a global manufacturing hub, India has announced a significant reduction in import taxes on key mobile-device components. This initiative is poised to benefit major players like Apple Inc., which is increasingly eyeing India as a pivotal location for smartphone production.
The Indian government, led by Prime Minister Narendra Modi, has decided to lower tariffs on various components such as plastic and metal mechanical parts, SIM sockets, and screws. This move is seen as a positive step towards attracting global brands like Apple to shift their manufacturing focus from China to India.
Pankaj Mohindroo, Chairman of India Cellular and Electronics Association, applauded the government’s decision, emphasizing its significance in making mobile manufacturing more competitive in India. Mohindroo highlighted the importance of building scale and leveraging low input tariffs to transform India into a global hub for electronics manufacturing and exports.
Apple, among other companies, has already witnessed success in boosting production within India, contributing to over 7% of the global iPhone output. The reduction in import tariffs is expected to make assembly more cost-effective, potentially motivating manufacturers to focus on exporting devices as domestic smartphone consumption stabilizes.
This strategic move aligns with Modi’s broader vision, with India’s smartphone exports doubling in the fiscal year through March 2023, reaching approximately $11 billion. The implications of this tariff reduction are not limited to multinational corporations; it also extends benefits to local entities like the Tata Group, which is now actively involved in iPhone manufacturing.
As India continues to fine-tune its policies to attract global tech giants, the nation’s journey towards becoming a prominent player in the global electronics manufacturing arena takes a significant leap forward. The latest developments position India as an attractive destination for companies seeking a resilient and cost-effective manufacturing base, marking a pivotal moment in the country’s economic evolution.
Dhairya Saraswat