The India Cellular and Electronics Association (ICEA) stated that increase in taxes on components will make the products manufactured in India under the PLI scheme globally uncompetitive.
ICEA in its budget 2022 wishlist demanded the roll-back of goods and services tax to 12 per cent from 18 per cent at present as it is a deterrent for growth of domestic market and manufacturers.
In a letter to the Ministry of Electronics and IT, ICEA chairman Pankaj Mohindroo stated that the production linked incentive (PLI) scheme offers an incentive for meeting partial cost disability for manufacturing in India compared with other countries such as China and Vietnam that existed before January, 2020.
"Increasing tariffs on inputs will lead to impact on the cost structures of PLI approved companies," stated Mohindroo.
The government expects mobile phones worth Rs 10.5 lakh crore to be manufactured under the PLI scheme.
(With inputs from PTI)
