The India Cellular & Electronics Association (ICEA) have urged the government to roll back the 2.5 per cent customs duty on some components proposed in the budget.

According to ICEA, such a move will negatively impact the plans of global value supply chains looking to shift to India and domestic device makers alike. Moreover, it will threaten investment and production targets set under the production-linked incentive (PLI) scheme. ICEA noted that the development will hurt the target of producing phones worth Rs 10.5 trillion in the next five years under the PLI scheme.

As per ICEA, up until now, there was no customs duty on the inputs for these mechanical products, while the GST was 18 per cent. However, now inputs are being proposed to be charged with duties between 2.5 per cent and 15 per cent in addition to the 18 per cent GST.