As the festive season draws near, consumers are eager for price reductions on popular products, including smartphones. Attractive promotions and discounts are widely available, both online and in physical stores, to capture customer attention. This trend typically leads to a spike in sales, as people upgrade their devices, creating a surge in demand for the latest smartphone models.
New phone buyers are now curious whether there has been any tax relief on mobile phones. However, it appears that smartphones will continue to be sold at the same prices. The GST rate on mobile phones remains unchanged. The mobile phone industry had anticipated a reduction in GST from 18% to 5%, a move that would have resulted in lower prices and potentially boosted sales during the upcoming festive season. However, the government has opted to keep the GST at 18%.
India’s mobile phone manufacturing sector has seen significant growth. The sector’s production reached ₹5.45 lakh crore in fiscal year 2025, a considerable increase from ₹18,900 crore in fiscal year 2015. Exports have also crossed ₹2 lakh crore. This expansion has propelled India to become the second-largest mobile phone producer worldwide.