The government lowers import duties on smartphones, TVs, and EV batteries, making electronics more affordable.
The Indian government has proposed significant cuts in customs taxes to make smartphones, televisions, and electric vehicles (EVs) more affordable. The Union Budget 2025’s tariff cut will contribute to lower consumer prices and industry costs.
TVs and Smartphones to Reduce Prices
Import duties on 28 vital components used in the manufacturing of smartphone batteries have been removed by the government. The manufacturers will be able to save money as a result, potentially leading to reduced smartphone pricing.
Duties on key components for televisions, like the film chip, printed circuit board assembly (PCBA), and glass boards, have been cut. This indicates that TV prices could fall in the following months.
Cheaper EV Batteries Will Boost Sales
EVs in India are likely to become more affordable as the government eliminates customs tariffs on 35 battery-making components. Materials including cobalt, lithium-ion battery waste, lead, and zinc will now be less expensive to import. This will lower the cost of producing EV batteries, making electric cars and bikes more affordable.
Increased Flat Panel Display Import Duties
While many electronic devices will be cheaper, the government has raised the import duty on interactive flat panel displays from 10% to 20%. This is to boost local manufacturing and reduce imports.
India is also in talks with the US about trade agreements. The government may drop taxes on American goods such as auto parts and chemicals in exchange for lower traffics on Indian exports. This agreement is estimated to total $23 billion in trade.
India’s Plan to Increase Local Manufacturing
The Finance Minister stated that India aspires to be a global leader in sustainable energy, solar cells, and EV manufacture. The country’s EV market is growing fast, and these new regulations will speed up the transition to electric mobility. The cost of electric cars, televisions, and smartphones is expected to decrease. The government’s emphasis on cost-cutting measures and supporting local firms is a crucial step toward self-reliance and economic growth.
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