The Indian government has postponed an import tax on smartphone touch panels. The Indian government has announced a delay to a legal process that was due to take effect this month to tax imports of touch panels, which will affect smartphone makers such as apple and samsung. The tax will come into effect in April 2020, assuming the finance ministry agrees to the ministry's proposal, according to Reuters. Speaking at prime minister Narendra Modi's "make in India" campaign, he said the government had been gradually increasing import duties on telephone parts to spur companies to establish local manufacturing.

Apple and other members of the mobile phone association of India clearly brought their clout last month, arguing that the touch panel tax and other government measures could hurt their business.Samsung wrote to the government saying it could not produce two high-end phones that included the duties.Samsung is expected to open an Indian assembly plant for touch panels by the end of March 2020, and it is unclear whether that explains the delay.

Despite some success in industry complaints about "Make in India", India is now second only to China in telephone production, with samsung, OPPO and apple assembly partners foxconn and witron already operating factories, and the regulator ICEA itself admitting that "Make in India" has created more than 600,000 jobs.

Apple accounts for just 1 per cent of the Indian smartphone market, often blamed on a combination of low-cost competition and high iPhone prices, exacerbated by import costs. For years, the company has used selling outdated hardware in this market as a solution - wistron is currently assembling the iPhone SE and 6s in the country.

Foxconn is considering moving some of its iPhone production to India, which would have the twin benefits of lower import costs, less reliance on traditional supply chains and compliance with local sourcing requirements.


India has delayed a legal process that was supposed to take effect this month to tax imports of touch panels