Even as it attempts to position itself as a rival to China, India is concerned that its high tariffs may push smartphone manufacturers toward competitors in Vietnam, Thailand, and Mexico. The Finance Minister of India received a letter from Rajeev Chandrasekhar, the deputy IT minister, highlighting “high production cost due to highest tariffs,” according to Reuters.
To increase job possibilities, the Indian government is trying to attract major corporations like Apple, Foxconn, and Samsung to the nation. However, since India imposes a 20% tax on parts like smartphone chargers, some circuit boards, and even assembled smartphone devices, lobbies have pointed the finger at the high tariffs.