India Government may impose an additional 5-10 percent custom duty on imported phones to encourage manufacturing of devices in India.

The retail price of imported smartphones such as Apple iPhone may increase by 5-10 percent. The development will be a big boost for phone companies which are manufacturing or assembling their devices in India.

“MEITY’s initiative to impose an additional 5-10 percent custom duty on imported handsets is a welcoming step towards smartphone industry. It will boost the sentiments of the local players and provide a level playing field for all the manufacturers within the segment,” said Manish Sharma, president of CEAMA.

CEAMA, a consumer electronics manufacturing association, said it provides the necessary impetus at the same time motivates the local manufacturers to align themselves to governments ‘Make in India’ vision.