Schedule a Call Back
Bringing components used in electronic goods under the
production-linked incentive (PLI) scheme and having rationalised tariffs on
inputs are two of the demands of manufacturers from the upcoming Budget.
The demand is part of the recommendations submitted to the
government by the India Cellular and Electronics Association (ICEA). They are
aimed at attracting global value chains (GVCs) and scaling up production and
exports in the next five years.
The industry body has also asked for a Rs 400-450 billion
package for the components ecosystem, extended over six-seven years.
“To build a sustainable and robust electronics manufacturing
industry, it is imperative to develop a components and sub-assembly ecosystem.
The government should provide appropriate policy and financial support for
building large-scale components and sub-assembly ecosystems, with a longer
gestation and incentive period. This will offer long-term policy predictability
and certainty, creating an environment for business continuity,” said the ICEA.
Advocating tariff reduction, the industry body recommended
reducing the current seven tariff slabs for the mobile sector to four -- zero,
five, 10 and 15% -- by 2025.
The organisation wants removed the 2.5% tariff on sub-assembly
parts and inputs, and all tariff lines that increase costs significantly,
including those for components of complex sub-assemblies, be brought down to
zero.
Further, reducing the duty from 20% to 15% on the printed
circuit board assembly (PCBA), charger adapters and mobile phones, and
reduction in the duty on mic/receiver components from 15 to 10% are some other
demands.
The recommendations are based on a seven-country “Tariff Study”
on input tariffs for smartphones, said the ICEA.
“Sustaining the tremendous growth in mobile phone production and
exports requires matching the competitive tariff regimes of China and Vietnam.
Current high tariffs increase manufacturing costs in India by 7-7.5% on the
bill of materials (BoM), deterring local ecosystem development, hampering
exports and adversely impacting job creation”, said Pankaj Mohindroo, Chairman,
ICEA
According to the industry body, India’s simple average most
favoured nation (MFN) tariff for inputs is 7.4%, compared to China’s effective
zero offered in bonded zones, and Vietnam’s 0.7% FTA weighted average tariffs.
“That electronics is China and Vietnam’s largest multi-hundred
billion dollar export goes to prove that GVC participation and low tariffs are
a time-tested strategy for building a country’s export prowess in the electronics
sector,” said the ICEA.
India’s electronics manufacturing output reached $ 115 billion
in FY24, with $29.1 billion in exports, making the segment India’s
fifth-largest export category.
(Source: Business Standard)
To truly emerge as a global manufacturing hub, India must address these issues strategically. Core engineering disciplines—mechanical, civil, electrical, and chemical—are central to unlocking th..
Read moreSyrma SGS ensures precision and consistency in production. The R&D centres across India and Germany are the backbone of innovation, supporting the development of globally competitive products, says ..
Read moreLocated in Tamil Nadu—a key hub for global electronics manufacturing—the 17,000 sq. ft. Chennai facility is designed to accelerate new product introductions (NPIs) and reduce time-to-market for ..
Read moreDelco Fans Pvt Ltd offers single phase capacitor run and three
phase geared Instrument motors, totally enclosed face/foot mounted.
‘Kusam-Meco’ has introduced a new “Partial Discharge Acoustic Imager Model KM-PDAI.
Werner Electric Private Limited offers a wide range of 78 series din rail terminal blocks.
INDUSTRIAL PRODUCTS FINDER (IPF) is India’s only industrial product portal. Referred to as the ‘Bible’ of the manufacturing sector in India,
INDUSTRIAL PRODUCTS FINDER (IPF) is India’s only industrial product portal. Referred to as the ‘Bible’ of the manufacturing sector in India,
Hi There!
Now get regular updates from IPF Magazine on WhatsApp!
Click on link below, message us with a simple hi, and SAVE our number
You will have subscribed to our Industrial News on Whatsapp! Enjoy
Schedule a Call Back