Import tax cuts in Union Budget 2025 reactionary to Trump’s tariff threats?
According to Reuters, these import tax cuts will help India better deal with an otherwise unpredictable year, especially due to Donald Trump’s continued tariff threats. Trump tariffs are becoming a disruption in global trade, with the market being left uneasy, but for India, the call to slash import taxes on smartphone parts will also help boost local production, especially looking into the fact that India is steadily evolving into becoming the world’s second-largest mobile phone manufacturer.
Apple and Xiaomi are two companies that would be elated to receive this import tax slash news, as these companies based in US and China respectively, are the leaders of the smartphone market in India. Apple, according to Reuters, has captured a 23% share in total revenue during 2024, and Samsung comes in second at 22%.
India trying to jump the hoops amid US-China trade war?
Trump is currently looking at prioritizing America’s local industry, but this latest move by India around import tax is drawing speculations that the South Asian country is taking advantage of the US-China trade war, and trying to increase its own share of global supply chains, says Reuters.
FAQs:
Has India declared its Union Budget 2025?
Yes, the Union Budget for 2025 has been declared by the Government of India at the Parliament on February 1, 2025.
Has India slashed import tax on smartphone parts in Budget 2025?
Yes, India has indeed axed import taxes on smartphone parts in Budget 2025, with Apple and Xiaomi being major companies to become primary beneficiaries of the same, suggest reports.
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