India has the highest tariffs on inputs in electronic segment among competing economies, according to industry body ICEA’s study that 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- -vis the four competing economies. India Cellular and Electronics Association (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 per cent lines compared to Vietnam (for FTA tariffs) and 90 per cent 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.
“…our recommendation is that we should begin decompression exercise starting 2023. Relevant FTAs will take time, targeted tariff reduction is the immediate solution,” Pankaj Mohindroo, Chairman at ICEA, said during a briefing.
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