Duty on mobiles after GST: iPhones to get costlier; local brands won't gain

Smaller players could be routed; major Indian brands may not get any significant advantage

The Union government is mulling a 15 per cent basic Customs duty (BCD) on import of finished mobile phone handsets, once the goods and services tax (GST) takes effect.
 
This is intended to protect entities which have established manufacturing units in India and curb outflow of foreign exchange. Boosting local manufacturing or assembly of mobile phones is part of the government’s Make In India project. Local value addition in handsets is only two per cent.
 
The import duty has been proposed by the commerce and industry ministry. Under the phased manufacturing programme (PMP) developed by the ministry of