Price of your favourite smartphone is going to increase, know why
New Delhi/Bhubaneswar: After the recent increase in import of various items to the Indian market, the government has increased customs duty on the products including feature phones, as per a notification of the Finance Ministry.
The customs duty on your mobile handsets will go up by 15 percent, due to which you may have to pay more to buy your dream feature phone.
Import-dependent smartphone companies like Apple and Lenovo will be the most affected from this decision. Apple imports nearly 88 per cent of its devices into the country. It will either have to increase the price or start assembling more in the country, said industry experts.
The decision will have no affect on the domestic mobile phone market. Some China-based manufacturers and South Korean giant Samsung, who assemble their products in the country, will also be untouched from the decision. They just have to speed up their assembly lines to fulfill the increasing demand of the products.
The price of Apple phone will decrease once it starts assembling in India, but tax relief and other incentives from the government are awaited by the company to start assembling in the country.
Other than mobile handsets, the government has increased customs duty on television, microwace ovens and cameras.