Indian Government waives basic customs duty on certain goods used in the manufacturing of smartphones and other electronic devices; Government also approves the Vivo-Dixon joint venture
To boost local manufacturing of smartphones and other electronic devices in India and reduce dependence on imported gadgets, the Indian Government has recently taken two big decisions related to smartphone manufacturing.
According to reports, the government has waived basic customs duty on certain goods that are used to make mobile phones and other electronic devices, removing the current 7.5% and 5% levies.
The items on which the customs duty is removed include: wireless charging modules for mobiles, displays for medical devices and automobiles, and lithium-ion cells. It is said that the exemption will be valid until 31st March, 2029. This step is expected to boost cost competitiveness, domestic value addition and localisation of high-value smartphone and electronics manufacturing.
The decision is also expected to benefit global manufacturers like Apple and Xiaomi, who have recently expanded their production operations in India.
Other than this, Dixon Technologies has recently announced via its stock exchange listing that the Indian government has approved the Vivo-Dixon joint venture.
Dixon and Vivo entered into a agreement in 2024 to form a joint venture to undertake original equipment manufacturer business of electronic devices including smartphones. Yesterday, it was revealed that the Indian government has given its approval to this joint venture on 8th July. The joint venture company (JV Co.) will have the following shareholding: Dixon- 51% and Vivo Mobile India- 49%.
The venture will manufacture smartphones and other electronic devices as an original equipment manufacturer in India and will undertake Vivo’s smartphone productions orders in India, while it will also be able to manufacture electronic products for other brands.
