India's electronics manufacturing industry has urged the government to use the Union Budget 2026-27 to deepen the country's production ecosystem by lowering import duties on key components, fixing inverted duty structures and easing compliance for manufacturers. In its pre-Budget submission, the India Cellular and Electronics Association (ICEA) has called for targeted customs duty reductions on several mobile phone sub-components, arguing that high input costs are eroding India's competitiveness even as exports rise.
The industry body has sought a reduction in duties on parts such as microphones, connectors and circuit boards, saying these levies increase costs for domestic manufacturers compared to global peers.
ICEA has also flagged persistent inverted duty issues, where components are taxed at higher rates than finished products, discouraging local value addition. It has urged the government to rationalise duties on wearable devices, hearables and wireless charging components to support scale and affordability.
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Beyond smartphones, the industry is pushing for zero customs duty on inputs used in manufacturing machinery, warning that current structures make it cheaper to import equipment than build it in India. ICEA says easing duties on capital goods will be critical for expanding advanced electronics manufacturing and battery production.
The association has also recommended simpler customs classification, easier bonded warehouse norms and clearer wastage allowances to reduce operational friction. According to the industry, these changes would help manufacturers scale faster, cut costs and improve export competitiveness.
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