Budget 2025 Wishlist: Electronics Body ICEA Seeks Duty Reductions, Rate Simplification

Electronics manufacturing lobby India Cellular and Electronics Association or ICEA is batting for a simplification of rate slabs as well as tweaks in tariffs to boost domestic manufacturing of electronics such as televisions, and car displays, among others.

In a letter to the government—disclosed to the media on Wednesday by ICEA—the industry body listed seven key recommendations for Union Budget 2025-26. The letter, dated Nov. 29, was addressed to then Revenue Secretary Sanjay Malhotra, who has since been named RBI Governor.

The ICEA called for a simplification of tariff structure for electronics components into 3+1 slabs of 0%, 5%, 10% and 15%. The current structure is "complex, especially on sub-assemblies and components" and "impacts global competitiveness and export potential", it said.

Next, it has sought a waiver of the 2.5% duty on parts and inputs of flexible printed circuit assembly, camera modules, printed circuit board assembly, and connectors. "High tariffs on sub-assemblies and their components inflate manufacturing costs, limiting India’s competitiveness," it said.

Third, ICEA has asked for a separate categorisation of FPCAs under new HSN code at 10% duty. "FPCBAs are currently classified as PCBAs, though their functionality is similar to connectors," the body said.

Fourth, it has asked for a reduction in duty on sub-assembly inputs for open cells to 0% to support domestic TV manufacturing. "The current 2.5% tariff on inputs hinders competitiveness and discourages local production because of lack of sufficient differential duty," it said.

Fifth, it has requested the government to address the inverted and convoluted duty on inductor coil modules, as it "increases costs, creates complexity in customs processes and clearance delays, as well as increases lead times, impacting supply chain efficiency."

Sixth, the ICEA has sought a continuation of the benefits of the Phased Manufacturing Programme for hearables and their components beyond fiscal 2026, as the domestic industry is still in its growth phase. "This would provide the necessary time for domestic production to scale up and for the supply chain to mature. It will also help reduce costs and address challenges such as rapid technological advancements and frequent product modifications," it said.

Lastly, it has asked for a waiver in duties on car display inputs.

ICEA chief Pankaj Mohindroo, while speaking to NDTV Profit last week, said the body had called for adjustments in tariff structure to foster competitiveness. “Some tariffs are just irritants and neither protect the industry nor create investments,” he said.