The India Cellular and Electronics Association (ICEA) has advocated reduction of duties on parts and components while calling for simplification of tariff structure into ‘3+1 slabs’. In its Budget recommendations for 2025-26, the association highlighted that high tariffs on sub-assemblies and their components inflate manufacturing costs, limiting India’s competitiveness. In addition, ICEA has termed India’s current tariff regime as among the most complex globally.
It has suggested removal of 2.5 per cent duty on parts and inputs of printed circuit board assembly (PCBA), flexible printed circuit (FPCs), camera modules, and connectors.
ICEA has called for a simplified tariff structure into 3+1 slabs- nil for parts/inputs and sub-parts of sub-assemblies/components; at five per cent for parts of certain components; at ten per cent for sub-assemblies and components; and 15 per cent for finished goods.
It has also pitched for reduction of duties on open cell inputs for television manufacturing.
Moreover, ICEA favoured rationalisation of duties on components for hearable devices. As per the association, in order to support the nascent domestic industry for hearable devices, it is essential to maintain the existing duty structure while ensuring components and inputs are duty-free.
