Electronics industry urges cut in import tariffs

Pitching for a reduction in import tariffs for the electronics sector ahead of the Union Budget, the India Cellular & Electronics Association (ICEA) and IKDHVAJ Advisers LLP said in a report on Thursday that high import tariffs were making India less competitive in global markets as well as negating the effect of supportive policies such as the performance-linked incentives (PLI).
India’s tariffs had to be compared with those of competing countries such as China, Mexico, Thailand and Vietnam, according to the report, which includes a detailed study of 120 tariff lines of electronics priority products in India and these four key competing investment destinations. These imports constitute 80% of the cost of mobile phones —India’s largest product out of the $75-billion electronics sector.