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India Cellular and Electronics Association (ICEA) requested a cumulative outlay of approximately ₹40,000 crore as financial support for building the components and sub-assembly ecosystem.
In a detailed of recommendations for the Union Budget 2025-26, the electronics body called for financial support for building large-scale components and sub-assembly ecosystem.
“To build a sustainable and robust electronics manufacturing industry, it is imperative to develop a components and sub-assembly ecosystem. Increasing electronics production by four times from the estimated $115 billion to $500 billion and increasing value addition from 15-20 per cent to 30-35 per cent requires substantial financial support,” said the ICEA.
Regarding mobile phone manufacturing, ICEA asked for an amendment to custom notification to expand the list of inputs and materials eligible for exemption. It pointed out that recent technological advancements have broadened the range of materials used in production of mobile phones. In March 2024, the ICEA said that India produced 97 per cent of its total mobile phone demand locally and 30 per cent of the total production in FY 2024 was meant for export.
Further, ICEA highlighted challenges related to the interpretation of the Manufacturing and Other Operations in Warehouse (MOOWR) scheme that defers duty on import of inputs and capital goods for manufacturers. The body asked that the government come up with clear guidelines that specify how the MOOWR scheme can come under the ambit of the Remission of Duties and Taxes on Export Products (RoDTEP), a scheme that neutralises the duties suffered on exported goods. It also asked for automation of MOOWR to MOOWR transfer of goods, including duty and taxes and depreciation on clearance of capital equipment.