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India raises import tax on various electronic products like smartphones and televisions. One of the major reasons for this move is to encourage Make in India Movement and help build domestic industries. The tax has been increased from 10% to 15% which will help curb international goods that are imported from overseas.

This hike has impacted a lot of telecom companies that were importing cheap smartphones to offer huge discounts and packaged services in a war to capture India’s $10 billion smartphone market. One of the major companies to receive a setback after this move is Apple as most of iPhone models are imported.

Samsung seems unaffected by this move as all the handsets sold by Samsung in India are assembled in India. While Apple only assembles its iPhone SE model in India and all its other models are imported, almost an 88% of iPhones are imported to India. The company is pleading tax relief from the government but Indian officials have claimed that they are unlikely to make exemptions for Apple.

Effects of this move regarding Apple is very predictable, either it will lead to further increase in iPhone prices in India or the company will be compelled to assemble its products in India. Imported goods in India have been increased by 22% and this acted as a hindrance to the domestic market, causing a huge concern for the policymakers.

Regardless of the fact that already overpriced iPhone might just get even more expensive, it still seems to be a very noble move as it gives a huge upper hand to smartphones and other electronic gadgets that are made in India. Eight out of ten phones sold in 2017 were made in India and this move will only ensure that all phones sold in India are made in India.

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