Electronics firms seek duty cuts to boost local output

PUSH FOR LOWER DUTIES TO IMPROVE MANUFACTURING VIABILITY

- OJASVI GUPTA

ELECTRONICS MANUFACTURERS HAVE pitched for a broad set of customs duty changes in the Union Budget, maintaining that rationalising tariffs on components and capital equipment is critical to sustaining the country’s mobile phone and electronics manufacturing momentum.

The proposals, submitted by industry body ICEA, are aimed at reducing cost disadvantages faced by domestic units and improving competitiveness as global companies expand supply chains beyond China.

For companies such as Apple’s contract manufacturers, Samsung, Dixon Technologies, Tata Electronics and Reliance-backed electronics ventures, the recommendations, if accepted, could lower input costs, improve margins and accelerate localisation of components that are still largely imported.