Smartphone makers in India have raised prices by as much as 40%, according to a Mint report, as the war in West Asia and a chip scarcity push up costs. The increases appear to be industry-wide, with brands such as Vivo, Oppo and Samsung, among others, raising their price tags.
Smartphone makers in India have raised prices by as much as 40%, according to a Mint report, as the war in West Asia and a chip scarcity push up costs. The increases appear to be industry-wide, with brands such as Vivo, Oppo and Samsung, among others, raising their price tags.
Ordinarily, this should not attract the attention of policymakers. But these handsets are fast turning indispensable at every socio-economic level, needed as they are for internet access, UPI payments, Aadhaar identity verification and a whole lot more.
The dream of AI diffusion to uplift those at the bottom of India’s income pyramid also depends on smartphone affordability. As of now, the country subsidizes their production through an incentive scheme for manufacturers. But smartphone purchases bear a GST burden of 18%.
Given how quickly they are becoming essential items, India should consider offering buyers tax relief; a GST rate of 5% could make them more affordable and help revive flagging demand in this once-booming market. This is not just another consumption category. These devices are tickets to better lives and livelihoods. They mustn’t get priced out of people’s reach.