In the run-up to the Budget 2025-26, the India Cellular and Electronics Association (ICEA) has urged the government to simplify the tariff structure and sought a reduction in duties on electronics parts and components used in mobile phones, television sets, hearables, and car displays.
In a letter to the finance ministry, ICEA said India’s current tariff regime is among the most complex globally, with multiple rates — 0%, 2.5%, 5%, 7.5%, 10%, and 15% – and surcharges.
The association has called for reducing the number of slabs to four – 0% for parts/inputs and sub-parts of sub-assemblies/components, 5% for parts of certain components, 10% for sub-assemblies and components, and 15% for finished goods.
“This complexity, especially on sub-assemblies and components, impacts global competitiveness and export potential,” Pankaj Mohindroo, chairman of ICEA, said in the letter.
“High tariffs on sub-assemblies and their components inflate manufacturing costs, limiting India’s competitiveness,” Mohindroo said, adding that the current 2.5% duty on parts and inputs of printer circuit board assembly (PCBA), flexible printer circuits (FPCs), camera modules, and connectors should be reduced to 0%.
To support domestic television manufacturing, the association has called for reduction of duties on sub-assembly inputs for open cells to 0% from 2.5%. Besides, the association wants the government to rationalise duties on components for hearable devices.
Specified parts of hearable devices and battery currently attract duty of 10%. ICEA said the domestic industry for hearables is still in its growth phase. Keeping the rates intact would provide the necessary time for domestic production to scale up and for the supply chain to mature. It will also help reduce costs and address challenges such as rapid technological advancements and frequent product modifications, the association said in the letter.
On car display parts like Blu, cover glass, and open cell, the duty is at 15%, which in a way reduces cost-effectiveness. ICEA said, “To encourage and build scale for display assembly manufacturing in India, all inputs of display assembly irrespective of the end use should be at zero duty aligning with the duty structure of mobile phone display.”