NEW DELHI: Mobile phone makers, including Apple’s contract manufacturer Foxconn and the Tata group, have petitioned the govt to reduce duty on imports from the US to 0%, fearing a loss of business to China and Vietnam, if the Trump administration slaps reciprocal tariffs, such as ones mandated on cars and auto components. India currently has a 16.5% duty on mobile phone imports, while countries such as the US allow shipments at zero duty.
Mobile phone exports to the US are currently pegged at around $10 billion, with Apple sending iPhones worth $8 billion. Local companies fear that if US govt carries its threat of reciprocal tariffs, companies like Apple, Samsung and Motorola may shift their production to other locations.
The India Cellular & Electronics Association has requested govt to look into the matter urgently as it works out a bilateral agreement framework with the US.
Foxconn and Tatas have been rapidly boosting iPhone production in the country, taking benefits from the production-linked incentive (PLI) scheme announced by the govt to incentivise local manufacturing. Local player Dixon has also been expanding factory output to ride the momentum of India manufacturing.