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India’s booming electronics manufacturing industry is being tarnished by high input tariffs, resulting in cost disabilities and increasing cost of production, according to a report by India Cellular and Electronics Association(ICEA).
In a comparative study of input tariffs across India, China, Vietnam, Thailand, and Mexico covering 120 key components, the India Cellular and Electronics Association found that increasing tariffs on inputs increases the cost of production, thereby reducing the competitiveness of India in electronics manufacturing, for both finished products and inputs in global value chains.
“The high input tariffs are completely incompatible with India’s exports ambitions and put us at a massive disadvantage with countries like China, Vietnam, Mexico and Thailand,” India Cellular and Electronics Association (ICEA) said.
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