A Stronger Manufacturing Future: MAIT Calls for Reduced Duties and Tax Incentives

MAIT has called on the Indian government to cut basic customs duties on select electronic components and increase tax incentives, aiming to enhance domestic manufacturing and global competitiveness. By proposing reductions on key inputs, MAIT hopes to strengthen India's manufacturing base and encourage more exports.

The Manufacturers' Association for Information Technology (MAIT) is urging the government to slash basic customs duties on vital electronic components, a move seen as critical in enhancing domestic manufacturing capabilities and boosting global competitiveness ahead of the upcoming Union Budget.

In its pre-budget recommendations, the industry body suggested reducing the basic customs duty on essential sub-assemblies like camera modules, display assemblies, and connectors from 10% to 5%. This reduction is aimed at lowering input costs, making domestic products more competitive in the international market.

Furthermore, MAIT is advocating for continued incentivization of domestic mobile manufacturing, proposing a zero-duty regime on parts and inputs for inductor coils. The industry also recommends lowering import tariffs on audio components and extending the limitation period for repair and return imports to position India as a global repair hub. Adjustments in direct tax policies are also recommended to boost formal job creation.

(With inputs from agencies.)