The India Cellular and Electronics Association (ICEA) has urged the central government to reduce import duty and Goods and Services Tax (GST) on mobile phones.
In its recommendations for the upcoming Union Budget, the industry body has also sought production-linked incentive (PLI) schemes for manufacture of laptops, tablets, printed circuit board assembly (PCBA), and wearables.
ICEA Chairman Pankaj Mohindroo is of the view that imports are no longer a threat and duty of 20 per cent can be brought down since large-scale manufacturing is well on the way and the Indian industry can face competition.
He assured the Department of Revenue that the recent rise in mobile imports will be reduced to near zero by the next year as production picks up in India following the unblocking of the supply chain. There is great interest in India with the global supply chain moving out of China, Mohindroo noted.
“The shift of GVCs (global value chain) from China to India led by Apple is moving smoothly, he informed the department,” said an ICEA statement.
He said that proposal for GST cut on mobiles from 18 per cent to the earlier 12 per cent is required to curb the emerging grey market and also keep mobile phones within the reach of the common man.
The ICEA also said that that the component assembly sector is of the view that Phased Manufacturing Programme (PMP), based on duty protection in different stages, needs a fresh look and must be revamped to balance protection with incentives and that calibration must substitute blind protection.
It has further suggested a hike in the Budget allocation for the industry to promote Centres of Excellence (CoE), research and development (R&D) and also focused incentives aimed at promoting strategic segments of the industry.