@Evening: 📱 Budget Boost For Domestic Entry-Level 5G Phone Manufacturing

@Evening: 📱 Budget Boost For Domestic Entry-Level 5G Phone Manufacturing

by Karan Kamble - Feb 2, 2023 07:28 PM +05:30 IST

👍 Good news to homegrown Indian phone companies

5G services in India (Twitter)
5G services in India (Twitter)

The Union budget 2023 brought some good news to homegrown Indian phone companies.

The announcement. Customs duty on the camera lens and its inputs/parts for use in the manufacturing of the camera module for mobile phones has been slashed from 2.5 per cent to zero.

  • Plus: Relief in customs duty on import of certain parts and inputs like camera lens, and

  • Continuation of the concessional duty on lithium-ion cells or batteries for another year.

  • The Finance Minister said these moves would "further deepen domestic value addition in manufacture of mobile phones."

  • Mobile phone production in India has increased from 5.8 crore units, valued at about Rs 18,900 crore in 2014-15, to 31 crore units, valued at over Rs 275,000 crore in the last FY.

How it matters. The budget proposals pertain to key cost elements in the indigenous manufacture of phones, even if not the costliest.

  • The quality of the mobile phone camera — how many megapixels, how many lenses, etc — can be a deal-breaking aspect for many buyers.

  • Reducing the duty on camera elements to zilch is bound to help pare down the cost of the bill of materials of a 5G phone, as will the customs duty holiday on the lithium-ion battery fabrication.

Opportunity for India-made 5G phones. Even six months ago, two Indian phone makers announced 5G phones priced around Rs 10,000 — Noida (NCR)-based Lava International and Hisar-based Maplin.

  • The latest customs duty announcements might help makers like these keep their prices even more competitive.

  • With the demand for 5G becoming increasingly important, we are likely to see more new, non-traditional 5G phone developers come up.

  • In November last year, Bengaluru-based startup Optimus Logic unveiled a prototype of what it called "India’s 1st homegrown Global 5G mobile," called the Optimus Rhino 5G 1, which it developed in association with IIT Hyderabad.

Bottom line: Clearly, India’s vibrant startup community is seeing 5G as both a challenge and an opportunity to enter the new mobile phone ecosystem with innovative ideas. The budget proposals are likely to help in that regard.

Get Swarajya in your inbox everyday. Subscribe here.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Comments ↓
Get Swarajya in your inbox everyday. Subscribe here.

Latest Articles

    Artboard 4Created with Sketch.