India Slashes Import Duties on Gold, Silver, and Mobile Phones to Boost Exports

India has significantly reduced import duties on gold, silver, platinum, and mobile phones. This move aims to bolster exports, particularly in the jewelry and mobile manufacturing sectors, by lowering material costs and incentivizing domestic production.

In a significant move to bolster India's export market, import duties on gold, silver, platinum, and mobile phones have been reduced. CBIC Chairman Sanjay Kumar Agarwal announced that the reduction will significantly enhance exports, especially in the jewelry and mobile phone sectors. Last financial year, India exported mobile phones worth Rs 1.2 lakh crore, and the trend continues to rise.

The jewelry sector is also set to benefit from the import duty cuts on gold. The duty on gold has been slashed to 6% from 15%, while platinum duties have been adjusted to 6.4% from 15.4%, effective July 24, as announced by Finance Minister Nirmala Sitharaman. Agarwal pointed out that high import duties on gold had led to increased smuggling and imports under Free Trade Agreements (FTAs), pushing the government to take proactive measures.

Mobile phones and their parts have seen a reduction in import duty from 20% to 15%, under the phased manufacturing program initiated four years ago. Agarwal highlighted that domestic production reached Rs 4.1 lakh crore last year. With a well-established production ecosystem, the sector no longer requires high tariff protection. This move is expected to deepen the value chain, enhance capacity, and further boost domestic manufacturing. The government has also formulated a scheme to attract major electric vehicle manufacturers to India, tied to concessional duty rates and investment conditions.

(With inputs from agencies.)