~ By Ravi Agarwal, MD and Founder of Cellecor Gadgets Limited
India is on the cusp of becoming a world leader in the mobile phone industry, excelling not just in consumption but also in innovation and production. Reducing Basic Customs Duty (BCD) on mobile phones, mobile PCBA, and chargers to 15% marks a new era for our industry. This balanced approach fosters growth, ensures affordability, and will have a multifaceted impact, promoting India as a global leader in mobile phone production and consumption. This initiative aligns with the vision of a ‘Vikshit Bharat,’ emphasizing self-reliance and robust domestic production. By making manufacturing more cost-effective, we are not only driving economic growth but also empowering our workforce and setting the stage for India to lead globally in the mobile phone industry.
Moreover, the reduction of the TDS rate for e-commerce from 1% to 0.1% will enhance cash flow and streamline operations, supporting the sector’s growth. With India’s e-commerce market expected to hit $120 billion by 2026, and mobile commerce driving 70% of this growth, these changes are timely. The introduction of e-commerce export hubs will strengthen India’s global trade position, offering infrastructure to boost exports.
At Cellecor Gadgets Limited, we are excited to leverage the recent budget initiatives to expand our reach, optimize operations, and enhance our technology. These measures not only reflect the government’s commitment to advancing a dynamic digital economy but also align with our goals of growing our product portfolio and delivering superior value. We look forward to supporting the government’s efforts in elevating the mobile phone industry and witnessing its transformative impact on the economy.
Over the past six years, the Indian mobile phone industry has achieved remarkable milestones, including a three-fold increase in domestic production and a nearly 100-fold jump in exports. This growth underscores the sector’s maturity and crucial role in India’s economy. By reducing the BCD, the government addresses high import duties, paving the way for enhanced competitiveness and innovation. This will lower production costs, enabling manufacturers to offer more affordable, feature-rich devices, which is vital in a market like India, where affordability drives consumer adoption. With over 750 million smartphone users and a projected market volume of $77.27 billion by 2027, the growth potential is immense.
The mobile phone industry has long faced challenges from high taxes and duties, hindering growth. The current reduction in BCD should mitigate these issues, allowing companies to invest more in R&D and bring cutting-edge technology to India. This reduction will also stimulate domestic manufacturing, creating job opportunities and skill development. Additionally, it will attract global companies to establish manufacturing units in India, reinforcing the country’s position as a global manufacturing hub.
