The India Cellular and Electronics Association (ICEA) has called for significant reductions in import duties on components and sub-assemblies to bolster smartphone exports from India. The industry body highlighted that India currently imposes the highest tariffs on such inputs among a group of seven countries, which includes Vietnam, China, and Mexico. In its recent report, the ICEA pointed out that domestic smartphone production has surpassed local demand, positioning exports as a crucial driver for future economic growth and job creation.
The association underscored the necessity of aligning India’s tariff regime with those of leading export nations like China and Vietnam to fuel the anticipated increase in mobile phone exports. These exports are expected to constitute 30% of the total projected production value of $49-50 billion in the current fiscal year. The report elaborates on the challenges posed by high input tariffs, which are seen as limiting the potential for growth and production expansion. It notes that the simple average of India’s most favoured nation (MFN) import duties on inputs stands at 8.5%, which is considerably higher than China’s 3.7%.
However, the effective tariff rate in China is often closer to zero due to the majority of mobile phone production occurring in Bonded Zones, where inputs enjoy zero tariffs. Additionally, the ICEA report compares India’s tariff environment with Vietnam’s, where nearly 80% of imported inputs benefit from free trade agreements (FTAs), resulting in an average input tariff of just 0.7% for Vietnam, significantly lower than India’s 8.5%. The ICEA’s findings also highlight the dominant positions of China and Vietnam in the global mobile exports market, which together account for nearly 85% of the more than $190 billion industry. In contrast, India’s mobile exports stood at $11.1 billion in FY2023. The association believes that reducing input tariffs is essential for India to achieve its ambitious goal of increasing its mobile exports to $50 billion in the coming years.
Your source for supply chain report news updates: The Supply Chain Report. For international trade insights and tools, head to ADAMftd.com.
#India #Cellular #Electronics #ICEA #SmartphoneExports #ImportDuties #TariffReduction #MobilePhoneProduction #EconomicGrowth #JobCreation #FTAs #GlobalMarket #Manufacturing #TradePolicy #DigitalEconomy #ExportGoals
The India Cellular and Electronics Association (ICEA) has called for significant reductions in import duties on components and sub-assemblies to bolster smartphone exports from India. The industry body highlighted that India currently imposes the highest tariffs on such inputs among a group of seven countries, which includes Vietnam, China, and Mexico. In its recent report, the ICEA pointed out that domestic smartphone production has surpassed local demand, positioning exports as a crucial driver for future economic growth and job creation.
The association underscored the necessity of aligning India’s tariff regime with those of leading export nations like China and Vietnam to fuel the anticipated increase in mobile phone exports. These exports are expected to constitute 30% of the total projected production value of $49-50 billion in the current fiscal year. The report elaborates on the challenges posed by high input tariffs, which are seen as limiting the potential for growth and production expansion. It notes that the simple average of India’s most favoured nation (MFN) import duties on inputs stands at 8.5%, which is considerably higher than China’s 3.7%.
However, the effective tariff rate in China is often closer to zero due to the majority of mobile phone production occurring in Bonded Zones, where inputs enjoy zero tariffs. Additionally, the ICEA report compares India’s tariff environment with Vietnam’s, where nearly 80% of imported inputs benefit from free trade agreements (FTAs), resulting in an average input tariff of just 0.7% for Vietnam, significantly lower than India’s 8.5%. The ICEA’s findings also highlight the dominant positions of China and Vietnam in the global mobile exports market, which together account for nearly 85% of the more than $190 billion industry. In contrast, India’s mobile exports stood at $11.1 billion in FY2023. The association believes that reducing input tariffs is essential for India to achieve its ambitious goal of increasing its mobile exports to $50 billion in the coming years.
Your source for supply chain report news updates: The Supply Chain Report. For international trade insights and tools, head to ADAMftd.com.
#India #Cellular #Electronics #ICEA #SmartphoneExports #ImportDuties #TariffReduction #MobilePhoneProduction #EconomicGrowth #JobCreation #FTAs #GlobalMarket #Manufacturing #TradePolicy #DigitalEconomy #ExportGoals
