UPDATE 1-India raises import tax on cellphones, move to hurt Apple

From Reuters - December 15, 2017

NEW DELHI (Reuters) - India has increased the import tax on dozens of electronic products such as mobile phones and television sets, a government statement said, to help curb supplies from overseas and build up the domestic industry.

The rise in tax from 10 percent to 15 percent on handsets will make imports of phones - including most of Apples iPhone models - more expensive at a time the companys revenue growth is slowing in Indias $10 billion smartphone market.

Prime Minister Narendra Modi has launched a flagship Make-in-India program to expand the domestic industrial base, and one of the areas showing success is electronics.

Pankaj Mohindroo, president of the Indian Cellular Association, said on Friday the tax hike will boost domesticmanufacturers who are making about 500 million cellphones a year, more than double the output three years ago.

Eight out of 10 phones sold in 2017 have been made locally, data from Counterpoint Research showed.

Samsung Electronics (005930.KS) assembles in India most of the handsets it sells in the country.


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