Govt. has raised basic customs duty on mobile phones to 15 per cent from 10 per cent, imposed in July as it looks to encourage Make In India. Duty has also been raised on coloured television sets and microwave ovens to 20 per cent.

Currently, India is the second-largest smartphone market in the world in terms of number of users but it is expected to be the biggest market for global smartphone sales in the next few years.

In FY 2019-20, India’s smartphone manufacturing industry would be worth Rs 1,20,200 crore, the report claimed. The size of the domestic mobile manufacturing industry in FY 2019-20 is expected to be Rs 1,35,000 crore as against Rs 94,000 in FY 2016-17.

By 2020, almost 96 per cent of mobile phones sold in India will be locally manufactured, according to a research report. In 2016, two out of every three mobile phones sold in India were domestically produced.  This step is taken to encourage industry to make in India. The government had imposed customs duty on mobile phones for the first time from 1st July, coinciding with the roll out of goods and services tax.