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Smartphone and Laptop Prices Could Drop: The Government of India has removed the Basic Customs Duty (BCD) on components used in mobile phones, laptops, smart TVs, and similar devices. This move has raised hopes that their prices will decrease.

Smartphone and Laptop Prices Could Drop: Customers grappling with the high prices of smartphones, smart TVs, and laptops may soon find significant relief. In a major move, the central government has abolished the Basic Customs Duty (BCD) on materials used to manufacture smartphones, laptops, smartwatches, fitness bands, and smart TVs. This will lower production costs for companies, a benefit that could be passed on to consumers. Consequently, prices for devices like smartphones and laptops are expected to drop in the coming days.

Exemption to Continue Until March 2029

The government has eliminated the basic duty to boost domestic production. Materials used in manufacturing display assemblies, lithium-ion cells, and inductor coil modules will now become cheaper. This exemption will remain in effect until March 31, 2029. Through this measure, the government aims to increase the domestic production of electronic goods and reduce costs for companies. Currently, India relies heavily on China and Vietnam for components like display assemblies and lithium-ion cells; the government took this decision to reduce that dependency. This move is expected to boost domestic production and decrease reliance on foreign sources.

Smartphones, Laptops, Smart TVs, and Other Devices Could Become Cheaper

Display assemblies and lithium-ion components account for a significant portion of the total cost of smartphones, laptops, and smart TVs. Previously, these components attracted a Basic Customs Duty of 5–7.5%. With the duty removed, it will become cheaper for companies to procure these parts, thereby reducing their manufacturing costs. To pass this benefit on to consumers, companies may lower the prices of devices like laptops, smartphones, and smart TVs made in India.

Phones and Laptops Are Steadily Becoming More Expensive

The AI ​​boom has led to a shortage of storage and memory chips. Prices are skyrocketing due to the combination of supply constraints and high demand. This has increased production costs for manufacturers of smartphones, laptops, and similar devices, directly impacting their retail prices. Consequently, companies ranging from Apple and Samsung to Lenovo and Dell are raising the prices of their smartphones, laptops, and smart TVs. However, a recent decision by the Indian government has raised hopes that devices manufactured in India, at least, might become more affordable.