India has taken a strategic step to strengthen its position in the electronics market by eliminating import duties on components critical for mobile phone manufacturing. This initiative was announced during the country's annual budget presentation by Finance Minister Nirmala Sitharaman. This move presents significant opportunities for tech giants like Apple $AAPL and Xiaomi $1810.HK.

Growth of Electronics Manufacturing in India

Over the last six years, India has shown impressive growth in electronics manufacturing. The production volume in this sector has more than doubled, and it is projected to reach $115 billion by 2024. As a result, India now ranks second globally in terms of mobile device manufacturing.According to research by Counterpoint, Apple led the Indian smartphone market in 2024, capturing 23% of total revenue in this sector. Samsung $005930.KSfollowed closely with a 22% share, highlighting the competitive landscape of these brands.

Key Components for Manufacturing

- Printed circuit boards  

- Camera modules  

- USB cables  

Before the removal of duties, these components were subject to a 2.5% tax.

Support for Local Manufacturing

Eliminating these duties not only stimulates local manufacturing but also promotes job creation and reduces production costs, making products more affordable for consumers.

1. Investment Enhancement: With favorable conditions, international companies view India as a promising hub for expanding their production capabilities.

2. Technological Advancement: The new policy encourages the integration of innovative technologies into manufacturing processes.

3. Economic Impact: The increased production volume positively affects the country's overall economy, strengthening its role in the global market.

Through these changes, India not only enhances its competitiveness in high-tech industries but also promotes the long-term sustainability of its local economy by attracting major international players.