Whalesbook
Strategic Policy Demands for Budget 2026
The Manufacturers' Association for Information Technology (MAIT) has formally petitioned the government ahead of the 2026 Union Budget, advocating for critical policy shifts to invigorate India's electronics manufacturing sector. The association emphasized the escalating geopolitical uncertainties and trade policy volatilities as reasons for a strong domestic industrial base. MAIT's core demand centers on rationalizing import duties for components not yet manufactured locally, aiming to directly reduce input costs for domestic producers.
Component Duty Reductions
The industry body specifically proposed cutting the basic customs duty (BCD) on key sub-assemblies such as camera modules, display assemblies, and connectors from the current 10% down to 5%. Furthermore, MAIT called for eliminating all duties on parts and inputs essential for inductor coils. Tariffs on audio components, including microphones, receivers, and speakers, are also targeted for reduction from 15% to 10%. These measures are intended to enhance cost competitiveness and encourage greater value addition within India.
Global Repair Hub Ambitions
To position India as a significant global center for electronic equipment repair, MAIT has requested an extension of the allowed import period for goods intended for repair and subsequent return. The current limit of 7 years is proposed to be increased to 20 years, aligning with international norms and the typical lifecycle of electronic devices.
Tax Incentives for Employment
On the direct tax front, MAIT highlighted the need to support formal job creation. The association recommended increasing the lower salary threshold for calculating deductions under Section 80JJAA (new employment generation) from ₹25,000 to ₹50,000. This adjustment is intended to account for wage inflation and provide a stronger incentive for businesses to hire new employees.
Sustaining Mobile Manufacturing Momentum
MAIT also stressed the importance of continued support for the domestic mobile manufacturing ecosystem, particularly as the production-linked incentive (PLI) scheme is slated to conclude on March 31, 2026. The body argued that building on the established capacity is crucial for both domestic demand and export growth, urging policymakers to signal commitment to India's manufacturing prowess.