Finance Minister Arun Jaitley has increased the customs duty 5% on smartphones to the port for the purpose of promoting 'Make in India' in the budget. With this, smartphones imported from overseas in India will now be more expensive than ever before. Customs duty on the first imported smartphones was 15 percent, but in the Union Budget, it has been increased to 20 percent.   

Make In India will get a boost this fiscal step by Finance Minister Arun Jaitley is expected to boost indigenous business and domestic manufactures. In fact, by increasing the customs duty on mobile imported from abroad, it will become more expensive than ever before and it will benefit domestic companies such as Intex, Micromax, Carbon and Lava. 

Apple will get the biggest blow from this move of the government. Most of Apple's iPhones are imported from China, and Apple will now be forced to place its units in India. Now there is a unit of Apple in Bangalore where iPhone SE is there.   

The Government's emphasis on Make in India is to give full thrust to the 'Make in India' promotion. That's why the government has increased import duty three times in the last 12 months. In February 2017, import duty on mobile was 10 percent, which was increased to 15 percent in December and now the budget has increased the import duty on mobile to 20 percent.   

Will China shift from manufacturing to India?

Actually, there are very limited mobile and electronic goods manufacture in India. In China, there are several times more electronic and mobile manufacturing from India. China can be said to be the hub of manufacturing. The government wants that more value from China should be manufacturing in India and India becomes the hub of electronics and mobile manufacturing.   

Last year, the report released by the government said that the mobile industry has a share of 6.5 percent in the GDP of the country. That is, the Indian mobile industry is about $ 140 billion. The government wants that by 2020, the share of the mobile industry in the country's GDP will increase to 8.2 percent. 

From 2015 to 2017, the mobile manufacturing industry has generated more than 38,330 jobs in India, which is much less compared to other sectors. In such a situation, the government wants the mobile industry to become the country's manufacturing hub and generate maximum employment.

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