Finance Minister Arun Jaitley has presented the budget. There was nothing special for the smartphone users in this budget. During the budget, Arun Jaitley said that customs duty on imported mobile has been increased from 15 percent to 20 percent. This means that mobile phones made in India will be more expensive, but the prices of mobile phones imported from other countries will increase.
As soon as the budget speech is over, the responses of mobile companies have started.
HMD Global India vice-president Ajay Mehta, a Finnish company maker, Nokia said, "HMD Global will continue to work even further on PM Modi's make-in-India campaign. Import duty for mobile phones has been increased to 15-20%, this decision will have less impact on our business, as all the Nokia phones are being made in India. "
Syed Tajuddin, CEO of Chinese Smartphone Maker Coolpad India said after this budget, "This budget is mixed and there is no such thing in it that can be especially said that it can boost the production sector in India. This is good news for the agriculture and rural economy, but there is no good news for the mobile handset industry.
Coolpad CEO adds, "Increasing customs duty from 15% to 20% will be a burden on the customer, especially when high-end smartphones will be repaired"
They have also said that due to the increase in customs duty, more companies will create their handsets in India and pressurize them to do the Assembly but there is no better support for the spare parts of the production in the local ecosystem.
In total, Coolpad believes that its direct impact will be on the customer's pocket, whether it is in buying a mobile or repairing it.
Rajiv Jain, CFO, Indigenous Mobile Phone Maker Intex has said, "This budget is better for indigenous business. Intex is known for making consumer products for Tier 2 and 3 cities and now the demand for electronic products will increase after this budget.
Rajiv Jain, on increasing customer duty, said, "The step to increase customs duty for Make in India is welcome. This will boost plant setup and production in India. It is fantastic for indigenous companies such as Intex, who have been producing here a lot already.
As a response to this budget, Mahesh Genderardi, founder and chairman of Indigenous smartphone maker Smartron, has said, "The increase in basic customs duty on mobile phones is a good initiative for local production and this will also help in innovation in India."
General Manager of Chinese Smartphone Maker One Plus India India has said, "Since the announcement of making in India program 3 years ago, 85 percent of smartphones sold in India have been made in India. Therefore, it is time now to create such regulation that can attract companies to invest in the production sector. At present, all the smartphones of One Plus are manufactured in India, so we are already working to increase the share in local production so that the new regulation will have minimal impact on the customers'
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