The Ministry of Electronics and Information Technology (MeitY) has engaged in discussions with the Finance Ministry to address growing concerns within the mobile phone manufacturing industry regarding high tariffs on imported components. MeitY sources told CNBC TV18 that the ministry emphasised the detrimental impact of these tariffs on both domestic demand and export growth.
According to sources, the ministry has officially raised the industry's concerns with the Finance Ministry ahead of the upcoming vote-on-account Budget. The primary focus of MeitY's discussions has been the high tariffs imposed on imported components crucial for mobile phone manufacturing. The ministry argues that these tariffs are hindering the industry's potential for export-led production and hurting overall growth.
MeitY is reportedly acknowledging the saturation of the domestic market, pointing out that Chinese phone makers, in particular, are seeking avenues for expansion. The next logical step for these manufacturers is to concentrate on increasing exports from India, thereby contributing to the country's economic growth.
MeitY sources highlighted the need for rationalization and a potential reduction in tariffs to facilitate incremental production. The ministry is actively working towards creating an environment that fosters export growth, ensuring the competitiveness of the Indian mobile manufacturing sector on a global scale.
The industry's plea for tariff adjustments comes at a critical juncture, with MeitY playing a crucial role in addressing these concerns and pushing for policy changes. MeitY's proactive approach aligns with the government's vision to boost the manufacturing sector and promote India as a global manufacturing hub.
As the Finance Ministry prepares for the vote on account, industry leaders and stakeholders are hopeful that MeitY's advocacy will lead to positive changes in the tariff structure. The outcome of these discussions could potentially reshape the landscape of mobile phone manufacturing in India, providing impetus to both domestic demand and export-oriented production.
First Published: Jan 16, 2024 3:13 PM IST
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