Smartphones and laptops could become cheaper: The Indian government has removed basic customs duty on components used in mobile phones, laptops, and smart TVs, raising hopes of lower prices.
Smartphone and Laptop Could Become Cheaper: Customers struggling with the high prices of smartphones, smart TVs and laptops may get a big relief in the coming days. Taking a big step, the central government has abolished the Basic Custom Duty (BCD) on the material used in making smartphones, laptops, smartwatches, fitness bands and smart TVs. This will make it cheaper for companies to make smartphones and other devices, and customers can also get the benefit from this. Therefore, it is expected that the prices of devices like smartphones and laptops may come down a bit in the next few days.
The exemption will continue till March 2029
The government has abolished basic duty to boost domestic production. Materials used in display assembly, lithium-ion cells, and inductor coil modules will become cheaper. This exemption will continue until March 31, 2029. Through this, the government aims to increase the production of electronics goods in the country and reduce costs for companies. Currently, India is heavily dependent on China and Vietnam for display assembly and lithium-ion cells. The government has taken this decision to eliminate this dependence. This will increase domestic production and reduce dependence on foreign countries.
Smartphones, laptops, smart TVs and other devices may become cheaper.
Display assembly and lithium-ion components account for a significant portion of the total cost of any smartphone, laptop, or smart TV. Previously, these components were subject to a basic customs duty of 5-7.5 percent. With this removal, it will become cheaper for companies to procure them, reducing their manufacturing costs. To pass this benefit on to customers, companies may offer cheaper prices on devices like laptops, smartphones, and smart TVs manufactured in India.
Phones and laptops are getting more expensive.
The AI boom has led to a shortage of storage and memory chips . This supply shortage, coupled with high demand, has led to skyrocketing prices. This has increased costs for smartphone and laptop manufacturers, impacting their prices. This is why companies ranging from Apple to Samsung, Lenovo to Dell are increasing the prices of their smartphones, laptops, and smart TVs. Now, following the Indian government's decision, there's hope that at least devices manufactured in India will become cheaper.
