Electronics Industry Urges Duty Cuts, MOOWR Reforms in Union Budget 2026-27

• The electronics manufacturing industry seeks rationalisation of customs duties, correction of inverted tariff structures, and easing of operational bottlenecks in the upcoming Union Budget 2026-27.
• Indian Cellular and Electronics Associations (ICEA) recommends targeted reductions in Basic Customs Duty (BCD) for mobile phone components, wearables, display assemblies, and capital goods.
• ICEA proposes cutting import duties on mobile phone sub-assemblies (microphones, receivers, speakers) and Printed Circuit Board Assemblies (PCBAs) from 15% to 10% to boost cost competitiveness and localisation.
• The industry highlights inverted duty structures affecting display assemblies and inductor coil modules, advocating for zero duty on inputs to encourage domestic assembly and manufacturing.
• Reforms to the Manufacturing and Other Operations in Warehouse Regulations (MOOWR) are sought, including depreciation allowance, RoDTEP benefits, simplified clearance, and deemed AEO Tier-1 status for units.

Why It Matters: Electronics industry pushes for duty cuts and MOOWR reforms to enhance India's manufacturing competitiveness.