Electronics industry seeks import duty reductions and incentives in Budget 2025: Report

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The electronics industry has requested significant concessions in the upcoming Budget 2025, Budget 2024, Budget 2023, Budget 2022, Budget 2021, Budget 2020, particularly in the form of reduced import duties on key components used in mobile phone manufacturing. The call for tariff reductions comes as the sector faces higher import duties compared to its regional counterparts, such as China and Vietnam.

The electronics industry has requested significant concessions in the upcoming Budget 2025, Budget 2024, Budget 2023, Budget 2022, Budget 2021, Budget 2020, particularly in the form of reduced import duties on key components used in mobile phone manufacturing. The call for tariff reductions comes as the sector faces higher import duties compared to its regional counterparts, such as China and Vietnam.

According to a report by Economic Times, the industry has asked for a reduction in the import duty on components like inductor coils, microphones, and printed circuit board assemblies (PCBA). Phone manufacturers have specifically proposed a cut in the duty on microphones, receivers, speakers, and flexible printed circuit assemblies from 15 percent to 10 percent. They have also sought the elimination of the 2.5 percent duty on parts of printed circuit board assemblies, the ET report added.

India’s effective tariffs on mobile phone inputs range from 7 percent to 7.2 percent, which is significantly higher than those in China and Vietnam, the industry noted. These issues were raised during a pre-budget meeting with Finance Minister Nirmala Sitharaman on December 26.