hometechnology NewsWEF 2024: Ashwini Vaishnaw backs mobile industry demand for tariff cuts on components
WEF 2024: Ashwini Vaishnaw backs mobile industry demand for tariff cuts on components
Earlier this month, the industry body ICEA released a report which highlighted the cost disability that India faces vis-à-vis China and Vietnam, due to high import tariffs.
India’s Telecom, IT and Rail Minister Ashwini Vaishnaw has openly supported the mobile manufacturing industry’s demand for tariff cuts on imported components, calling it the “next logical step”. He confirmed that there was “absolutely” a case made for a cut in import duties on mobile components.
He confirmed his support for the industry demand, in an exclusive conversation with CNBC-TV18, on the sidelines of the World Economic Forum (WEF) 2024 in Davos, Switzerland.
Ashwini Vaishnaw said, “We’ve had a detailed discussion with the industry. Most of the industry gave clear, cogent reasons for the demand for duty cuts. We have also made recommendations.” He noted that that industry has successfully been able to meet the domestic demand through manufacturing in India. He reasoned that the focus of the mobile manufacturing industry now needs to shift from import substitution to export-led growth.
Earlier this month, the industry body ICEA released a report which highlighted the cost disability that India faces vis-à-vis China and Vietnam, due to high import tariffs. The report concluded that a cut in tariffs on imported mobile components could lead to incremental exports of 44%.
The report argues that a reduction in Customs duty could unlock incremental exports of 44%. As per the report, business as usual will lead to exports scaling up from $11 billion in FY23 to $27 billion by FY27. ICEA argues that with duty cuts on imported components, exports could swell to $39 billion.
However, the minister steered clear of any commitment on when the tariff cuts could be expected. He said, “Would leave that to the Budget process. It is a part of the Budget exercise.”
He further expressed confidence in the electronics manufacturing space. He noted that during his visit to Davos, he witnessed a lot of interest, from major players, in the mobile component manufacturing space. He said, “We could see that at least two would like to have a significantly large footprint in India.”
He also added, “Important manufacturers were here (in Davos). Five of them said that they want to double their manufacturing footprint in India.”
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
2024 Lok Sabha Elections | What does a low voter turnout indicate for NDA and I.N.D.I.A Bloc
Apr 29, 2024 5:48 AM
'Borrowed' leaders: Congress hits out at AAP for not fielding their own candidates in Punjab
Apr 28, 2024 9:53 PM
EC asks AAP to modify election campaign song and Kejriwal's party is miffed
Apr 28, 2024 9:25 PM