NEW DELHI: Prices of imported smartphones, mainly of Apple, are set to rise by upto 4% and marginally for Volte featurephones as the government increased basic customs duty to 20% in the Union Budget 2018. About 75-80% of the phones sold in India are made locally, as most players operating here prefer to manufacture locally to take advantage of the duty differential versus imports. "The increase in customs duty on mobile phones would incentivise manufacturing of these phones in India, however the value addition in India may continue to be lower," he added.The duty increase would be the third instance in the last 12 months. In February 2017, the government imposed a 10% import duty which it increased to 15% in December, and now to 20%.Handset makers welcomed the move saying that the duty increase will make India a hub for mobile phone manufacturing. "There will be marginal increase in mobile phone prices since 81% of volume and 84.5% of value is manufactured in India and we will cross 90% in 2018.

Source: Economic Times February 01, 2018 07:41 UTC