5% Import duty on mobile phone in budget
2013; advantage Nokia
Finance Minister P. Chidambaram has announced in budget
2013, a levy of 5% duty on imported mobile phones selling
at a price of Rs 2000 or more. The result is locally manufactured
phones to cost less than imported phones. So the Mobile
Phone OEMs who have manufacturing facility in India will
have advantage over others in serving the Indian market.
Nokia who started cell phone manufacturing facility in Chennai
in 2006 will benefit a lot from this policy. Nokia's Chennai
plant may soon touch 1 Billion count of phones manufactured
in India. It has the production potential to serve the market
demand of phones in India.
No other phone makers including Samsung, Micromax have
such advantage to serve the Indian market because they still
not have well established and capable production facilities
This is good news for local electronics manufacturing companies
who are interested in serving the component and subsystems
needs of phone OEMs. Budget 2013 direction is in line with
the Government long-term vision of promoting local electronics
manufacturing in India.
India's mobile phone unit requirement is estimated around
250 million phones per year. Much of this demand can be
met by local manufacturing companies provided Government
continue to support electronics industry with necessary
infrastructure, which at present now facing bottlenecks.