Anticipate surge in smartphone demand: Xiaomi India

As the union budget saw key announcements in various sectors including reduction of basic customs duty (BCD) on mobile phones and chargers from 20% to 15%, electronics companies see this as a strengthening of the domestic manufacturing ecosystem.

“At Xiaomi India, we have been manufacturing nearly 100% of our smartphones locally with a strong emphasis on sourcing components like PCBA, charging cables, camera modules, and mechanics, among others. Today's announcement will help further strengthen the domestic electronics manufacturing ecosystem,” says Muralikrishnan B, President at Xiaomi India.

The announcement for relaxation of BCDs of various items including chargers and mobile phones comes at a time when India saw a three-fold rise in domestic mobile phone production and almost 100-fold jump in exports in the past six years.

"We welcome the Budget 2024 announcement to reduce BCD on mobile phones, PCBA and chargers, while simultaneously extending exemptions on inputs/raw materials for smartphone manufacturing, capital goods, and inputs for capital goods in the electronics industry. The proposal for a comprehensive review of the tariff rate structure is another positive step that will further strengthen the industry,” Muralikrishnan added.

Aside from custom duty deductions, the finance ministry announced allocations worth more than Rs.3 lakh crore for schemes benefitting women and girls.

“We appreciate the government’s emphasis on increasing women's participation in the workforce and the employment-linked incentives for first-time employees. With these progressive steps, we anticipate a surge in consumer spending, including increased demand for smartphones." Muralikrishnan added.