Guwahati/16th December’2017 (Prag News Desk): India has increased the import tax on many electronic products such as television sets and mobile phones, to restrain supplies from overseas and build up the domestic industry.
The rise in tax from 10 percent to 15 percent on handsets will make imports of phones – including most of Apple’s iPhone models – more expensive at a time the company’s revenue growth is slowing in India’s $10 billion Smartphone market.
Prime Minister Narendra Modi has launched a flagship Make-in-India programme to extend domestic industrial ground, and electronics has expanding vastly with the passage of time.
According to a Counterpoint research, 8 is sold out of 10 phones in 2017 which were made locally.
Currently, Apple only assembles its iPhone SE models in India and imports its others. The company has sought a range of incentives and tax relief from the government for it to expand its manufacturing in India, but government officials have said they are unlikely to make exemptions for Apple.
It will impact Apple the most as the company imports 88 percent of its devices into India. Either this will lead to increase in iPhone prices or force Apple to start assembling more in India.
Aside from cell phones, the government also raised the import tax on video cameras to 15 percent from 10 percent and doubled the one on television sets 20 percent, its statement said.
Delegation of Indian telecoms equipment manufacturers met Finance Minister Arun Jaitley, seeking government help to promote the domestic industry while he prepares the budget for 2018/19.
On October, India’s goods imports in the seven months ending rose 22 percent to $256.4 billion from a year earlier, which raise concerns to the policy makers.