The India Cellular and Electronics Association (ICEA) has urged for a reduction in import duties on key electronic components and a simplification of the country’s complex tariff system. The industry body has proposed restructuring the tariff system into “3+1 slabs” and highlighted that India’s current tariff framework is one of the most complicated globally.
In its recommendations for the 2025-26 Union Budget, the ICEA pointed out that high duties on sub-assemblies and their parts drive up manufacturing costs, making India less competitive in the global market. The association has recommended the removal of the 2.5% duty on essential components, including parts for printed circuit board assemblies (PCBA), flexible printed circuits (FPCs), camera modules, and connectors.
“Reducing the 2.5% duty on these components to zero would significantly help reduce costs,” ICEA stated in its budget proposals. It further noted that India’s tariff structure is overly complex, with varying rates (ranging from 0% to 15% plus surcharges), which hampers the competitiveness of local manufacturers and their export capabilities.
To simplify the tariff structure, ICEA has proposed a four-tier system: a zero-duty rate on parts and inputs for sub-assemblies and components, a 5% duty on specific component parts, a 10% duty on sub-assemblies and components, and a 15% duty on finished goods. The association has also advocated for a reduction in duties on open cell inputs used in television manufacturing. “The current 2.5% tariff on open cell inputs limits competitiveness and discourages local production. A reduction to zero duty would better support domestic television manufacturing,” ICEA emphasized.
Additionally, ICEA has called for rationalizing duties on components for hearable devices, suggesting that maintaining the existing duty structure while making components and inputs duty-free would foster growth in this emerging sector. ICEA represents the Mobile Handsets and Electronics industry, encompassing manufacturers, brand owners, technology providers, VAS application and solution developers, distributors, and retail chains within the sector. The association is dedicated to advancing Indian manufacturing and design across industries beyond mobile handsets, while continuing to strengthen the progress achieved in the mobile handset and components industry.
