As we already know that in the previous budget held on October 2020, their is a hike of 10% in import duty on displays and touch panels. With this hike, after the budget we have seen that the prices of smartphones increased from 15% to 25%. Mobiles which are under 10K increased around 500 increase and the smartphones above 10K increased around 1500-2000 rupees  approximately. This is the send hike of import duty after the budget session held on April 2020. 

With in few months after October, in the union budget which was held on February 2021 their is a hike of 2.5% of customs duty on manufacturers. Along with this they also increased the tax on circuit boards and some plastic mounding of mobile phone charges to 15% which was 10% earlier. The finance minister of India, Nirmala Sitharaman announced few exemptions for manufacturers. As we are dependent on importing the raw materials from other countries, government has taken a decision to increase business to the local manufacturers they have imposed these changes in the current budget.

But, we are not only dependent for mobile part we are also import the raw materials for LED Lights, Lighium-ion batteries, solar inverters and lams, sub-parts and more. With this the mobile manufacturers are set to extend further because the government has raised the duty on displays and touch panels to 10 percent. With the extra cess, the increased duty amounts to 11 percent of the display/ touch panel’s cost. This move, under the ‘Atmanirbhar Bharat’ campaign, is aimed toward pushing local manufacturing of displays and touch panels, which account for roughly 15-25 percent of the value of a smartphone. While official statements from major smartphone brands, like Samsung, Xiaomi, OPPO, Vivo, and Realme, are still awaited, estimates suggest feature phone and smartphone prices in India will increase by about 1.5 percent to five percent this festive season. If you're wondering why this move was implemented at such a critical time for the industry and what its impact on the buyer are going to be , here’s an explainer that covers everything you would like to understand about this development.

Brands, as mentioned earlier, are yet to form an announcement during this regard though. we'll need to await a politician word from major players like Xiaomi, Samsung, OPPO, Vivo, OnePlus, etc., to ascertain what proportion more smartphones will cost going forward.