Rationalise tariff on mobile parts to encourage other countries: Industry

Vietnam's weighted average tariff, taking into consideration its sprawling FTAs with countries, is a mere 1.1 per cent against India's 7 per cent

The message is clear. India’s high and increasing import tariffs between 2020 and 2023 have made mobile device manufacturing less competitive than in other countries, and have “negated the impact of incentives” like the production-linked incentive (PLI).

A report released by the Indian Cellular and Electronics Association (ICEA) and Mobile and Electronics Devices Export Promotion Council on Thursday said the increase in import tariffs on components to make mobile devices between 2020 and 2023 had led to an escalation in the cost of materials by 5.59 per cent and the cost by 3.6 per cent.

It said the government had