Electronics goods are the inseparable parts of our life. From smartphones, computers to other consumer electronics, we cannot think our life without them. There are many countries around the world that manufacture and supplies great quality electronics goods. But a smartphone or any other electronics cost much in India comparatively. Here’re few reasons behind this expensive rate of such goods.
Manufacturing And Retailing
India, being a very populous region has a demanding market for smartphones and electronics goods. Yet people have to buy such products with a much higher rate. The major cause is the third party retailer since most electronics are imported in India. India does not manufacture these goods. The third party retailing involves much cost which ultimately hikes the rate of a smartphone or any other electronics. Unless the country gets manufacturing units of brands like Apple, Nokia and others the price will continue to increase. The Same rule applies to the electronic goods such as Laptops and other consumer electronics.
The Goods and Service Tax has a profound impact on the price tag for each and every good selling in India. According to the new tax regime, the price of imported smartphones is likely to increase by 5-10 percent.
Many large brands have been asked to set up their manufacturing units in India by the government so that the chances of employment increase. This legendary move is set to create the ‘Make in India’ successful. This has been done to support and increase the local brand manufacturing. In order to meet local demands, many brands like Xiaomi, Oppo have already started to assemble their own products in India. But side by side the high customs duty will increase the price of all the imported electronics. This is a bad news for the consumers as the price tag is likely to get very expensive.
About 30% of smartphones sold in India are imported from US, Japan, and China. So the blow for higher rates will continue unless they start their own unit. But the government stated that there will be no concession to any company on taxes.
Indian Currency Depreciation
Due to the depreciation of Indian rupees many electronics goods that are imported are sold at a great price. Over years Indian currency has experienced fluctuating valuation against US dollars. Thus with the lower value of the Indian currency smartphones and other consumer gadgets has to be expensive.
To sum it up the consumer need in India is much higher because people are more inclined towards luxury than the need. Thus electronics goods for home and smartphones continue to sell immensely in the market. And in doing so we do not care for the high rate we are paying on the imported goods. If the ‘Make in India’ progress toward success as we all hope it does, then we are likely to see a difference in the price tag of the electronics.
Stay tuned for the updates.
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