The government on Monday proposed to impose import duty on components of mobile phones and chargers, to enhance local value addition.

Finance Minister Nirmala Sitharaman announced a review of 400 exemptions in customs duty including those applicable on the mobile devices segment.

"For greater domestic value addition, we are withdrawing a few exemptions on part of chargers and sub-parts of mobiles. Further, some parts of the mobile rate will move from nil rate to moderate 2.5 per cent," Sitharaman said.

She added that the customs duty policy must have twin objectives of promoting domestic manufacturing and helping India get on to global value chain and export better.

"The thrust now has to be on easy access to raw materials and exports of value addition," Sitharaman said.