India
India's import tariffs for the electronics sector are higher compared to countries like China and Vietnam that is negating the support provided through PLI schemes.
The high tariff is adversely impacting competitiveness, according to a report by ICEA and IKDHVAJ Advisers LLP. The report includes a detailed comparative study of 120 tariff lines of electronics priority products in India vis-a-vis four countries -- China, Vietnam, Thailand and Mexico. These imports constitute 80 per cent of the cost of mobile phones - India's largest produce out of the $ 75 billion electronics sector. The study highlighted that India has zero tariffs on 32 of the 120 tariff lines, while other countries have more zero tariffs - ranging from 53 (China) to 74 lines (Mexico).
For non-zero tariffs, India's tariffs are higher for 85 per cent (Thailand, Vietnam) to 95 per cent (China) of these tariff lines. A large share of Vietnam's imports are from countries with which it has free trade agreements (FTAs). Harsha Vardhana Singh, Chairman of IKDHVAJ Advisers LLP, said India has the largest tariff lines for the selected products, with tariffs in 2020 being higher than in 2014.
India's higher tariffs are even more evident for the priority products identified by the industry. For finished products, India's tariffs are slightly lower for only one tariff line of China, he added. However, there is no tariff line for inputs (components and sub-assemblies) for which India's import duty is lower than the competing economies, showing relatively higher production costs in India than the four economies, as per the report.
Source: ET Auto.com
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