Good news paving to the mobile users, the Mobile phones and mobile services are going to become slightly more reasonable with the persistence of indemnity from basic, the basic components and accessories and granted by CVD and special additional duties (SAD).

The impact of this change will lead to more visibility in the rural sector, which will impact the next wave of consumer growth. However, the mobile handset industry is yet to quantify the specific impact on the consumers, as there is exemption of 4% SAD on imported parts which has been extended from July 6, 2010, to March 31, 2011.

The import duty on components/raw material for batteries, chargers and other parts/accessories has been removed.

According to Ambrish Bakaya, director corporate affairs, Nokia India, these moves will surely help broaden the foreign investment inflow and encourage domestic manufacture of parts and accessories. It will also change India's emergence as a global telecom manufacturing hub. As by strengthening the financial rib of the middle class, the telecom sector will witness growth in the coming time.

Reduction in corporate surcharge would surely provide some relief, though the increase in MAT from 15% to 18% was the only concern. The hike in Central excise duty from 8% to 10% will lead to an increase in cost of service.