Imported mobile phones, television sets, digital cameras, microwave ovens, LED bulbs and a number of other electronics goods are set to become costlier after the government raised import duty on them in a notification issued late on Thursday.
Apple products such as iPhones will become more expensive, widening the gap with devices from the likes of Samsung that manufacture in India.
According to Economic Times, the analysts suggest that the prices of iPhones can go up by Rs 2,000 to Rs 3,000. For example, the iPhone X’s starting model, priced now at Rs 89,000, can go up to Rs 92,000 if the company decides to pass on the cost to consumers. Apple has not officially commented on the impact of the duty change on prices.
A 42-inch 4K TV sold by online exclusive brands now for about Rs 30,000 will see a price hike of around Rs 1,200 to Rs 1,400. A 65-inch 4K TV sold now for around Rs 2.15 lakh may cost Rs 2.25-2.28 lakh, industry executives said. The extent of hike will be more for the bigger screens. Similarly, a 20-litre convection microwave costing around Rs 10,000 will become dearer by Rs 500.
The companies said these are estimates, since they are yet to work out the exact price hike. To be sure, some companies may choose to absorb the duty increase, executives said.
The import duty increase is expected to prompt companies such as Apple to speed up local manufacturing programmes, giving a boost to the government’s Make in India programme.
India imported nearly $42 billion worth of telecom instruments, computer hardware and peripherals, electronic components and instruments and consumer electronics goods in FY17.
The duty on push-button phones and mobile handsets has been raised to 15 per cent from 10 per cent and that on TV sets to 20 per cent from 15 per cent .
