Union Budget 2023: Smartphones and Televisions Made in India to Become More Affordable

Finance Minister Nirmala Sitharaman declared today in her budget address that customs duties on key inputs for mobile phone manufacturing will be reduced. The decision is intended to enhance the country's smartphone production. Sitharaman said in her budget address that mobile phone production in India has surged from 5.8 crore units valued at around Rs 18,900 crore in 2014-15 to 31 crore units worth more than Rs 2,75,000 crore in the previous fiscal year. Smartphones and televisions made in India to become more affordable.

Sitharaman's statement

"To further enhance local value addition in mobile phone manufacturing, I propose to grant duty relief on some parts and inputs such as camera lenses and to extend the concessional tax on lithium-ion cells for batteries for another year," Sitharaman added.

Announcement for a one-year extension of the customs duty exemption for lithium-ion batteries

While presenting the last complete budget of PM Narendra Modi's government, the minister stated that mobile phone output increased from 5.8 crore units in 2014-15 to 31 crore units last year. She also announced a one-year extension of the customs duty exemption for lithium-ion batteries. In addition, the finance minister reduced the customs tax on portions of open cells in TV panels. It has now decreased to 2.5%. At the same time, the customs tax on electric kitchen chimneys has been raised from 7.5 percent to 15 percent.

Does the government want to help smartphone and television manufacturers?

The government intends to increase smartphone and television manufacturing in India by rewarding businesses. Finance Minister Nirmala Sitharaman stated in the Union Budget 2023 that the government wants to help smartphone and television manufacturers by lowering customs tax on some critical components.

Final Verdict

Sitharaman said in her budget address that mobile phone production in India has surged from 5.8 crore units valued at around Rs 18,900 crore in 2014-15 to 31 crore units worth more than Rs 2,75,000 crore in the previous fiscal year. The government would lower customs duties on some parts and the phone's camera components to boost manufacturing even further. The duty reduction for lithium-ion batteries will also be maintained for another year—Union Budget 2023: Smartphones and televisions made in India to become more affordable.