GST Reduction Urged for Mobile Handsets in India
New Delhi: The India Cellular & Electronics Association (Icea) president, Pankaj Mohindroo, emphasized the need to reduce GST on mobile handsets to 5% and domestic manufacturing volume to 220 million units. Mohindroo highlighted the current 18% GST rate as a hurdle to affordability, speaking at an industry event attended by leading trade associations. The Indian mobile market, represented by major Chinese and international brands, is supported by government initiatives, including Production Linked Incentive (PLI) and Phased Manufacturing Programme (PMP).
Referring to China’s subsidy model, Mohindroo urged the Indian government to drive demand and growth. He pointed out increased value in the market and the need to boost domestic consumption through financial incentives for device upgrades, similar to China’s strategy.
China’s recent subsidy on smartphones below ₹70,000 resulted in a surge in sales, making smartphones a significant export commodity worth ₹2 lakh crore. India, with over 300 manufacturing units, has an opportunity for growth and export expansion, including to the US and Europe.
Highlighting the need for a balanced supply chain, Mohindroo suggested reducing the proportion of online sales to 15%. With 1.4 billion potential consumers, supporting homegrown brands aligns with the vision of a self-reliant India.
