Since they have ascended the throne, the Narendra Modi government has been stressing on ‘Made in India’ products, encouraging manufacturers to set up manufacturing units in the country instead of importing products. However, people have been inclined towards imported models by a huge margin, leading domestic brands to suffer. Therefore, the government has decided to exercise a higher import duty on electronic devices. What does this mean for you?
It’s simple — if you were planning to buy one of those expensive iPhones or Samsung flagships, then you will have to witness higher price tags from now on. With the import duty raised from 10 per cent to 15 per cent, several manufacturers depending on exports for a majority of their products will have to suffer, unless they get ready to bear losses.
This comes as a bad news especially for Apple, who imports a majority of its offerings to the country. The recently launched iPhone X starts at almost Rs 1 lakh and with increased taxes, the price is now expected to go north. Other affordable offerings in Apple lineup will also see hikes in their price tags. However, one iPhone model will be exempt from the increased import duty — iPhone SE. Apple’s cheapest iPhone offering is manufactured in Bangalore and will be exempt from the price rise.
Similarly, Samsung’s flagship Galaxy S8 and Note 8 devices will also see price raises. The only major way to exempt their offerings from the tax raise is by bringing the production line to the country. Rumours have already suggested that Apple is planning to manufacture the second generation of the iPhone SE, which is expected sometime early next year, in India and import it to international markets.
