ICEA Advocates for Duty Reductions to Boost Electronics Manufacturing in India

The India Cellular and Electronics Association (ICEA) has called for simplification of India’s complex duty structure to foster competitiveness in the electronics manufacturing sector. Ahead of the upcoming Union Budget, ICEA has written to the Finance Ministry, urging for a streamlined tariff system with four slabs instead of the current multi-layered structure.

Currently, the duty structure includes multiple slabs (ranging from 0% to 15%), which ICEA argues hampers India’s global competitiveness and export potential. To address this, the association proposes a 3+1 tariff model: 0% for parts, sub-parts, and components, 5% for certain component parts, 10% for sub-assemblies and components, and 15% for finished goods.

In particular, ICEA has highlighted the high tariffs on sub-assemblies and components for mobile phones, which negatively impact manufacturing costs and overall sector growth. Reducing these duties is seen as crucial for enhancing India’s position in the global electronics market.

Source: CNBC