India's tariffs on electronics inputs highest amongst competing economies

livemint.com:

New Delhi: India's tariffs on electronics inputs are the highest amongst competing economies, according to a study by the Indian Cellular and Electronics Association. The industry body has said that the government must begin rationalising of tariffs or import duties to reduce disadvantages and increase competitiveness with rivals like Vietnam and China.

 The industry body said in its study and in a statement that the department of revenue, under the ministry of finance which takes the call on levying of tariffs, must create a glidepath for input duties to match those of Vietnam and China over next two years. "This will also help prepare the domestic industry in the eventuality that the final decision in the WTO case on the ITA-1 matter is unfavourable," the body said, referring to duties levied by India on fully made smartphones that has been challenged at the forum.  The body which represents many handset and electronics players in the country said that mobile manufacturing will get a further boost on the back of reduced tariffs as the current tariffs had already outlived their utility, transforming the mobile phone sector from a 78% import-dependent sector in 2014 to export oriented market with ₹90,000 crore of exports by March 2023 and 99.2% of phones sold in India are made in India.  Currently, India has the most complicated tariff regimes with six tiers or slabs - 0%, 2.5%, 5%, 10%, 15% and 20%, plus surcharges, which leaves the room for classification misinterpretation, and in turn, disputes between importers and customs authorities.  "Industry seeks a reduction in the number of tiers/slabs from six to three – 0%, 5% and 10%.