India to increase import duties on mobile phones, LED lights, auto parts and more

On February 1, India’s 2021 fiscal budget was announced. The fiscal budget involves all aspects of national economy and people’s livelihood. Among them, in terms of trade, the Indian government has made the following adjustments to tariffs, and cross-border trade practitioners may be affected.

In this budget, the Indian government increased customs duties on consumer electronics such as mobile phones, home appliances, and automobile parts and spare parts.

These include camera modules , connectors , back covers , side keys , mobile phone charger components , lithium-ion battery raw materials , refrigerator and air-conditioner compressors , LED lights , solar inverters and solar lamps , PCBA and PCB (printed circuit board panels and bare printed circuit boards, respectively, which are important components in the production of mobile phones, computers, etc.), automotive tempered glass , windshield wipers , etc.

In addition, tariffs on goods such as ink cartridges and ink nozzles , finished leather products , nylon fibers and yarns , plastic building products , cut and polished artificial stones ( including cut and polished cubic zirconia ), silk and cotton products will also be increased.

Tariffs on silver and gold and some other precious metals (platinum, palladium, etc.) as well as medical equipment imported by international organizations and diplomatic missions will be reduced .

India's increase in tariffs on related product parts is aimed at promoting the development of domestic manufacturing and improving the independent innovation capabilities of local enterprises, thereby helping India reduce its dependence on imports and become a more independent country. The prosperity of local manufacturing can also create a large number of jobs, reduce domestic unemployment, and help India's economy recover quickly. In addition, the increase in tariffs is also conducive to the increase of fiscal revenue.

However, for Chinese cross-border trade practitioners, India's tariff increase will be a big challenge. The tariff increase targets important parts and components of electronic products and common household appliances such as mobile phones, refrigerators, and air conditioners, which are the products that China exports the most to India.

The increase in tariffs on these major component products will make electronic products and household appliances such as mobile phones, refrigerators, and air conditioners more expensive. With the rise of India's local manufacturing industry, Indian people may choose cheaper Indian-made products more often, and Chinese-made products may gradually lose their competitiveness.

From the current perspective, Indian manufacturing is still in its infancy. Compared with Chinese manufacturing, Indian manufacturing is expensive and of questionable quality. Therefore, in the short term, Chinese manufacturing still has advantages, but Chinese sellers must also pay close attention to Indian market trends and adjust their business strategies in a timely manner to cope with market changes.

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