By Admin 
The Union Budget is going to be presented on February 1 and before that, different sectors are putting forth their demands from the government. The industry is not only expecting financial relief, but also wants support from the government to compensate for the losses due to the restrictions imposed by other countries globally. Electronics and mobile manufacturing sector is also included in these sectors, which has demanded protection and relief from the government citing the restrictions imposed in China.
Why appeal to the government?
The mobile and electronics industry says that China’s ban on the export of many important components used in manufacturing has had a serious impact on the global supply chain. Mobile phone manufacturing in India is largely dependent on imported parts, so China’s sanctions have put both production costs and supplies at risk. For this reason, companies are demanding the government to take such steps in the budget, which can strengthen domestic manufacturing.
India Cellular and Electronics Association (ICEA) has demanded from the government to reduce custom duty on mobile parts such as microphones, printed circuit boards (PCB) and wearables. Along with this, an appeal has also been made to reduce the tariff on other essential components, so that the total production cost of mobile phones can be reduced. ICEA’s member organizations include big global companies like Apple, Foxconn, Xiaomi, Vivo and Oppo.
According to news agency PTI, ICEA has told the government that uncertainty in the supply chain has increased significantly due to the restrictions imposed by China on manufacturing inputs. India’s dependence on imports is further increasing this risk. In such a situation, the industry organization has demanded that the benefit of zero duty should be given on the imported components used in mobile manufacturing, so that the companies can get relief and the production is not affected.
Demand for exemption in customs duty
The industry body also reminded that in the previous Budget 2025-26, the government had kept many capital goods out of customs duty. On the same lines, customs duty on imported components and lithium ion cells used in mobile phone production should also be reduced to zero. The organization says that without these essential components, not only will the production cost increase, but the manufacturing process may also be disrupted.
ICEA further said that the global supply of battery materials already remains uncertain and this problem has become more serious due to the ban on exports by China. In such a situation, it has become very important to develop domestic battery and lithium cell manufacturing capacity in India as soon as possible. Keeping this in mind, the industry organization has also demanded the government to waive customs duty on the machinery used in lithium cell manufacturing, so that India can move rapidly towards becoming self-reliant.
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