Budget 2026: MAIT Seeks Duty Cuts on Electronic Components and Tax Incentives to Boost Domestic Manufacturing
The association has called for enhanced credit guarantee coverage for micro and small enterprises, start‑ups, and export‑focused MSMEs.
As theunion budget of 2026 is closing in, the Manufacturers Association for Information Technology (MAIT) has submitted a set of recommendations to the government. The recommendations primarily focus on reducing import duties on critical electronic components and enhancing tax incentives to strengthen India’s electronics manufacturing industry.
MAIT has clearly mentioned the reduction in basic customs duty (BCD) on sub‑assemblies such as camera modules, display assemblies, and connectors from 10% to 5% as reported in News Bytes. These components are not widely manufactured in India, and rationalising duties would lower costs for domestic producers while encouraging value addition.
Additionally, the MAIT has recommended zero duty on inputs for inductor coils, to support local component manufacturing and lower tariffs on audio components (microphones, receivers, speakers) from 15% to 10%, to make domestic assembly more competitive.
MAIT’s pre‑Budget memorandum goes beyond tariff rationalisation. It emphasises the need for strategic interventions in ICT adoption, artificial intelligence integration, and market access.
The association has called for enhanced credit guarantee coverage for micro and small enterprises, start‑ups, and export‑focused MSMEs.
Also, for the extension of the limitation period for “import of goods for repair and return” from 7 years to 20 years, aligning with the life cycle of electronic equipment and global practices. This would help India position itself as a global repair hub.
On the employment front, MAIT has suggested raising the lower cap of salary from ₹25,000 to ₹50,000 for computing deductions under Section 80JJAA of the Income Tax Act. This provides incentives for new job creation. This adjustment would also reflect current wage realities and encourage companies to expand hiring.
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