To boost electronics production, ICEA demands lower input tariffs in Budget

Ahead of the Union Budget, India Cellular & Electronics Association (ICEA) has recommended reduction in input tariffs for building a strong components ecosystem.

ICEA based its recommendations on a "tariff study" it conducted across seven competing economies, including India.

"...high tariffs on inputs limit the very engine of growth that would lead to higher production. High tariffs on inputs reduce exports because they become uncompetitive, leading to lower production of the final product, i.e., mobile phones. Addressing this requires a reduction in tariffs on inputs.

"We recognise that developing the domestic supply chain is extremely critical but the right way is not by protecting with high tariff but drastically reducing disabilities by creating competitiveness and infuse incentive schemes wherever there are gaps," the report, which was released on Tuesday, said.

To attract global value chains (GVCs) and increase the scale of production, ICEA said all tariff lines that ...