Finance minister Nirmala Sitharaman on Wednesday announced a reduction in customs duty on certain mobile phone components and television parts. However, industry leaders said it would have little effect in reducing the prices.

Sitharaman said the customs duty will be brought down to 2.5 per cent on camera lenses and continue the concessional duty on lithium-ion cells for another year. Further, she said customs duties on open cells of LED TV panels will be reduced to 2.5 per cent.

She said mobile phone production in India has increased from 5.8 crore units valued at about Rs 18,900 crore in 2014- 15 to 31 crore units valued at Rs 2,75,000 crore in the last financial year. To further deepen domestic value addition in the manufacture of mobile phones, she proposed to provide relief in customs duty on the import of certain parts and inputs like a camera lens and continue the concessional duty on lithium-ion cells for batteries for another year.

Sitharaman also slashed the duty on the seeds for use in the manufacturing of rough lab-grown diamonds from 5 per cent to nil. However, gold and silver jewellery is going to be costlier. “Silver (including silver plated with gold or platinum), unwrought or in semi-manufactured forms, or in powder form 7.5 per cent to 10 per cent,” Sithraman said.

Duty has also been increased on articles of precious metals such as gold, silver, and platinum from 20 to 25 per cent.