The Manufacturers’ Association for Information Technology (MAIT) has submitted its pre-Budget recommendations to the Indian government, urging significant import duty reductions on critical electronic components and enhanced tax relief measures to boost domestic production.
In proposals sent to the Finance and IT ministries ahead of the 2026 Union Budget, MAIT highlighted that lowering the basic customs duty (BCD) on vital sub-assemblies — such as camera modules, display assemblies and connectors — from the current 10 per cent to 5 per cent would help reduce input costs and strengthen competitiveness for local manufacturers.
The industry body also recommended eliminating duties on parts used in inductor coils, and reducing tariffs on audio components like microphones, receivers and speakers. These steps are seen as crucial to encourage domestic value addition for components that are not yet extensively manufactured in India.
To further support growth, MAIT has called for tax incentives aimed at job creation, including raising the salary threshold for deductions under Section 80JJAA — a move intended to encourage formal employment in the sector.
MAIT’s strategy also includes positioning India as a global repair hub by proposing an extension of the period for importing goods for repair and return from 7 to 20 years, aligning with the typical lifespan of modern electronic equipment.
Industry analysts say MAIT’s recommendations reflect broader efforts to strengthen India’s electronics manufacturing ecosystem and reduce reliance on imported inputs — a key priority amid global supply chain uncertainties.
