The Union Budget is scheduled to be presented on February 1, and different sectors are putting forth their demands before the government ahead of time. The industry is not only hoping for financial relief but is also seeking government help to mitigate the damage caused by the restrictions imposed by other countries across the world. These sectors also include the electronics and mobile manufacturing industry, which has appealed to the government for protection and relief citing the restrictions imposed by China.
Why appeal to the government?
The mobile and electronics industry says that China’s restrictions on the export of many important components used in manufacturing have had a negative impact on the global supply chain. Mobile phone manufacturing in India is largely dependent on imported parts, and China’s sanctions have threatened both production costs and supplies. Therefore, companies are urging the government to take steps to strengthen domestic manufacturing in the budget.
India Cellular and Electronics Association (ICEA) has demanded that the government reduce custom duty on mobile parts like microphones, printed circuit boards (PCBs) and wearables. He has also appealed to reduce the tariff on other essential components to reduce the overall production cost of mobile phones. ICEA’s member organizations include large global companies like Apple, Foxconn, Xiaomi, Vivo and Oppo.
ICEA has told the government that restrictions imposed by China on manufacturing inputs have increased uncertainty in the supply chain. India’s dependence on imports further increases this risk. Therefore, the industry body has demanded that the benefit of zero duty should be given on imported components used in mobile manufacturing so that the companies get relief and there is no interruption in production.
Demand for exemption in custom duty
The industry body also reminded the government that in the last budget (2025-26), many capital goods were exempted from custom duty. Based on the same logic, custom duty on imported components and lithium-ion cells used in mobile phone manufacturing should also be waived. 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 is already uncertain, and export restrictions imposed by China have further exacerbated this problem. Therefore, it has become very important for India to develop domestic battery and lithium-ion cell manufacturing capabilities as soon as possible. Keeping this in mind, the industry body has also requested the government to waive custom duty on machinery used in lithium-ion cell manufacturing, so that India can rapidly move towards self-reliance.