January 31, 2019 (Reuters) - India, the third-largest economy in Asia, has benefited from a reduction in import duties on some parts used in the production of mobile phones, from 15% to 10%. Companies that manufacture in India include Apple and Xiaomi.

The finance ministry announced late on Tuesday that the import duty on parts, including GSM antennas, rear covers, battery covers, main camera lenses, and other mechanical plastic and metal items, had been lowered to 10%.

The announcement said that there is now no import duty on the inputs used to make these components.

Companies including Apple, Xiaomi, Samsung Electronics, and Vivo have expanded their phone assembly operations as a result of Prime Minister Narendra Modi's recent promotion of India as a hub for the manufacturing of smartphones.

The sector, however, pushed for tax reductions because levies on mobile phone parts were the highest among six comparable manufacturing nations, including China, Vietnam, Mexico, and Thailand.

Rajat Mohan, a director at tax consulting firm MOORE Singhi, stated that "duty cuts on import of mobile phone parts would help big global manufacturers to set up large scale mobile assembly lines in India and substantially increase exports of mobile phones."

Reuters revealed earlier this month that India was thinking of lowering import duties on necessary parts for making high-end cell phones.

The India Cellular and Electronics Association (ICEA) said in a statement that the action will increase the competitiveness of India's mobile phone manufacturing industry.

According to industry estimates, India's mobile phone exports doubled year over year to $11.1 billion in the fiscal year ending in March 2023 and are predicted to reach $15 billion in the current fiscal year due to the country's status as a manufacturing hub for international mobile companies.