Budget 2013 seems to be not that much good for Cellphone market
Finance Mininter P Chidambaram has proposed an increase in import duty on mobile phones priced above Rs 2,000 from the existing 1 per cent to 6 per cent. That means the cost will become definitely higher.
The positive part in the news is that the phones below 2000/- Rupees will not be affected.
According to Mr. P Chidambaram,” About 70 percent of imported mobile phones and about 60 percent of domestically manufactured mobile phones are priced at Rs 2000 or below. Mobile phones enjoy a concessional excise duty of one percent and I do not propose to change that in the case of low priced mobile phones. However, on mobile phones priced at more than Rs 2000, I propose to raise the duty to 6 percent”.
This is definitely a blow as the smartphones of all companies costs well above this. Recently the Samsung had cut down the cost of Samsung Smartphone in India. As the Mobile World Congress has been going on, many Mobiles phones are getting released and they were definitely on their way to Indian Markets too. But if things are going like this, none of them are going to make a big entry to India.