Current Affairs - Economy - Discussion

Indian Government imposed a 10% duty on import of key smartphone components with a view to boost domestic manufacturing. Components on which 10 per cent import duty has been imposed are printed circuit board assembly, loaded or stuffed printed circuit boards (for telephones as well as mobile phones), camera module and connectors of cellular mobile phones. So far, these three components were exempted from basic customs duty (BCD). Indian Government has already imposed 15 per cent import duty on chargers, battery, speaker, microphone, headset, keypad etc. under phased manufacturing programme (PMP) aimed at boosting indigenous production of mobile phones, by providing tax relief and other incentives on components and accessories used for the devices. In context of these news, it is important to note that India has replaced Vietnam to become the second largest producer of mobile phones in 2017.