ICEA Pushes for Tariff Reduction to Boost India's Smartphone Component Industry

The India Cellular & Electronics Association (ICEA) is advocating for reduced tariffs on smartphone components in the upcoming Budget. Higher tariffs hinder India's competitiveness, deter global firms, and limit the impact of the Production Linked Incentive (PLI) scheme. ICEA recommends rationalized tariffs, policy support, and development of a large-scale ecosystem for mobile phone manufacturing.

The India Cellular & Electronics Association (ICEA) has urged for a reduction in input tariffs on smartphone components in the forthcoming Budget. The association argues that higher tariffs foster import dependency and restrict the potential impact of the Production Linked Incentive (PLI) scheme.

ICEA Chairman Pankaj Mohindroo noted that high tariffs diminish India's competitiveness by increasing costs for domestic manufacturers and global suppliers. He emphasized that building local supply chains is hindered by high finance costs, a lack of technology, and significant skill gaps.

ICEA's recommendations include reducing tariff rates to 0%, 5%, 10%, and 15%, providing policy support to develop a comprehensive ecosystem, and establishing global-scale factories and warehousing for timely delivery. The association believes these measures will make India more attractive to global value chains and foreign direct investment, enhancing the nation's electronic manufacturing sector.

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