An official notification to this effect was issued by the Department of Revenue of the Ministry of Finance on Tuesday.
The items on which the customs duty was slashed include screws, SIM socket, battery cover, main cover, GSM antennae or other mechanical items of metal for mobile phones.
The decision was taken after the India Cellular and Electronics Association (ICEA) had submitted a report before the federal government citing a big variance in import duties levied in India and other major mobile phones manufacturing countries. The ICEA report had mentioned that high customs duty on mobile phones' components led to higher costing of the final product.
The move is seen as the federal government's bid to make India's mobile phones manufacturing facilities more competitive.
"The Indian government has cut import taxes on some components of mobile phones in a bid to make the local industry more competitive. The move will help the likes of Apple and Samsung to ramp up exports," said an online report by "The Economic Times" citing experts on Wednesday.
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