India’s tariff on electronics inputs highest among peers: Study

New Delhi, July 6 (KNN) India has the highest tariffs on inputs in electronic segment among competing economies such as Vietnam, said India Cellular and Electronics Association’s (ICEA) latest study.  

The industry body in its study has analysed input tariffs in electronics sector across five nations.

The high tariffs impact competitiveness, ICEA said on Thursday adding that the industry is seeking reduction of tariffs, and glide path to match Vietnam and other competing nations.

The study revealed that high tariff induced costs accentuates India's cost disability vis-à-vis the four competing economies.

During a briefing, Pankaj Mohindroo, Chairman at ICEA said, “Our recommendation is that we should begin decompression exercise starting 2023. Relevant FTAs will take time, targeted tariff reduction is the immediate solution.” 

ICEA said the study is critical to evaluate India's competitiveness to reach the USD 300 billion electronics production goal by 2025-26, including USD 120 billion of exports.

A line-by-line comparison of India's non-zero tariffs shows that India's tariffs are higher for up to 98% lines compared to Vietnam (for FTA tariffs) and 90% of the lines compared to Thailand.

The competing economies have nearly double or more, zero tariff lines than India, according to the study released by ICEA at a conference.

ICEA, India's apex electronics industry association, conducted the five-nation study of input tariffs in electronics sector across India, China, Vietnam, Thailand and Mexico, covering 120 key components.

KNN Bureau