Union Financed minister Nirmala Sitharaman in her Budget 2020 proposed a government scheme which is aimed at boosting the manufacturing of cell phones and electronic equipment in India. This is announced as an extension of the government’s ‘Make in India’ programme and as per the FM, will be aimed creating major disruptions in the country’s tech domain.
Manufacturing of mobile phones in India is a crucial vertical and it needs strict as well as robust regulations and provisions in order to attract more foreign players and which will in order attract over 800 million consumers.
Although the details will be announced soon, we can expect more waive-offs on the import duty that is currently levied on components such as smartphone and television displays. It will also help in boosting the production of electronic equipment and semiconductors, both of which are crucial for the assembly for consumer-end devices. Hence, we can expect mobile phones, tablets and televisions to get cheaper.
Currently, manufacturers such as Samsung, Oppo, and Xiaomi produce their smartphones locally, as opposed to assembling the devices. Now, the other players too are aiming to make in India as it will save a lot of a manufacturing cost which comes in the form of taxes imposed on imported electronic items when they are imported in the Indian market.
So, will the iPhone get cheaper? We cannot say anything right now, but if Apple plans on manufacturing the iPhone in India, the device will most certainly get cheaper in India. The other phones which will also get cheaper and this could impact the way Apple views India as the market.
Apple has also been in talks with the government so that they can open its retail stores in India to proliferate into the consumer segment that shops products offline. If a recent report is anything to go by, Apple is all set to launch its online marketplace in India which will be direct competition to partner websites such as Flipkart and Amazon.