New Delhi: Ahead of the Union Budget, the India Cellular and Electronics Association (ICEA) has recommended a cut in input tariffs to build a strong component ecosystem.
ICEA based its recommendations on a "tariff study" conducted in seven competing economies, including India.
"...high tariffs on inputs limit the engine of growth that leads to higher output. High tariffs on inputs reduce exports because they become uncompetitive, thereby reducing production of the final product, i.e. mobile phones. What needs to be addressed is reduction in tariffs on inputs.
"We believe it is extremely important to develop domestic supply chains, but the right approach is not to protect with high tariffs, but to address disabilities by creating competitiveness and creating incentive schemes wherever there are deficiencies," the report released on Tuesday said. Have to reduce." ,
To attract global value chains (GVCs) and increase the scale of production, ICEA said all tariff lines that significantly increase costs, including components for complex sub-assemblies, should be brought down to zero.
It also suggests removing 2.5 percent tariff on sub-assembly parts and inputs.
It said, "These tariffs serve no purpose. They fail to create domestic industry while increasing costs, complexity, and compliance for legitimate manufacturers."
The industry body further said that e-government should provide appropriate policy and financial support for building components and sub-assembly ecosystem on a large scale with long tenure and incentive period.
ICEA based its recommendations on a "tariff study" conducted in seven competing economies, including India.
"...high tariffs on inputs limit the engine of growth that leads to higher output. High tariffs on inputs reduce exports because they become uncompetitive, thereby reducing production of the final product, i.e. mobile phones. What needs to be addressed is reduction in tariffs on inputs.
"We believe it is extremely important to develop domestic supply chains, but the right approach is not to protect with high tariffs, but to address disabilities by creating competitiveness and creating incentive schemes wherever there are deficiencies," the report released on Tuesday said. Have to reduce." ,
To attract global value chains (GVCs) and increase the scale of production, ICEA said all tariff lines that significantly increase costs, including components for complex sub-assemblies, should be brought down to zero.
It also suggests removing 2.5 percent tariff on sub-assembly parts and inputs.
It said, "These tariffs serve no purpose. They fail to create domestic industry while increasing costs, complexity, and compliance for legitimate manufacturers."
The industry body further said that e-government should provide appropriate policy and financial support for building components and sub-assembly ecosystem on a large scale with long tenure and incentive period.
