The India Cellular & Electronics Association has demanded that the government consolidate the tariff lines into three slabs from the current seven. The proposed slabs are:
- SLAB 1: Duty for inputs
- SLAB 2: Sub-assemblies
- SLAB 3: Input parts
Key requests include:
- Duty for input parts of sub-assemblies: 0%
- Peak duties for sub-assemblies: Reduce from 20% to 15%
- Remove 2.5% nuisance tariffs on input parts
- Allocate Rs 35K-40K crore for parts Production-Linked Incentive (PLI)
Pankaj Mohindroo, chairman, ICEA said, “ICEA’s budget recommendations are based on the principle of leading our industry towards Viksit Bharat…balancing twin objectives of manufacturing growth and tariff rationalisation.”
The India Electronics & Semiconductor Association (IESA) also outlined key budget demands for Finance Minister Nirmala Sitharaman.
- Rs 75,000 crore over 3-5 years to establish collaborative R&D centers.
- Rs 10,000 crore over 3 years to train manpower for high-end semiconductor and parts manufacturing.
- Higher local value addition, requiring significant improvement, as emphasized by IESA President Ashok Chandok.
- One-day customs clearance turnaround, reduced from the current 3 days.
- Zero duties on raw materials for electronics parts in the national technology policy for 3 years.
“There should be a higher focus on increasing local value addition which needs drastic improvement,” said Ashok Chandok, President, IESA.The Electronic Industries Association of India (ELCINA) has outlined its budget wishlist, which includes the following;
- A dedicated venture fund for value-added electronics manufacturing with a focus on parts
- An allocation of Rs 73,000 crore for PLI and capex support
- An extension of the 15% concessional corporate income tax for manufacturing companies