Union Budget 2026: Import duty cuts on electronic components requested
What's the story
The Manufacturers Association for Information Technology (MAIT) has urged the Indian government to consider reducing import duties on key electronic components in its upcoming Union Budget. The industry body has also recommended increasing tax incentives to boost domestic manufacturing and enhance global competitiveness. In its pre-Budget recommendations, MAIT suggested lowering the basic customs duty (BCD) on critical sub-assemblies like camera modules, display assemblies, and connectors from 10% to 5%.
Strategic measures
MAIT emphasizes need for strategic interventions
MAIT emphasized the need for strategic interventions in information and communication technology (ICT) adoption, artificial intelligence (AI) integration, and market access. The industry body also called for enhanced credit guarantee coverage for micro and small enterprises, start-ups, and export-focused MSMEs. "To bolster domestic manufacturing, it is imperative to rationalize import duties on components not currently manufactured in India," said MAIT.
Manufacturing support
MAIT recommends 0 duties on inductor coils
To support local manufacturing of electronic components, MAIT has recommended lowering all duties on parts and inputs for inductor coils to zero. The industry body also suggested lowering the import tariffs on audio components such as microphones, receivers, and speakers from 15% to 10%. These measures are aimed at encouraging domestic value addition in the production of these critical electronic components.
Repair hub
Extension mulled for import of goods for repair
To position India as a global repair hub, MAIT has proposed extending the limitation period for "import of goods for repair and return" from seven years to 20 years. This proposal is in line with the expected life span of electronic equipment and global practices. The industry body also suggested raising the lower cap of salary from ₹25,000 to ₹50,000 for computing deductions under Section 80JJAA (for new employment generation).