Chennai: The India Cellular & Electronics Association (ICEA) has urged the government to classify mobile phones and their components under the 5 per cent GST slab, arguing that they are essential goods critical to digital inclusion and the Prime Minister's reform agenda.

Currently taxed at 18 per cent, mobile phones should be treated as necessities, said ICEA Chairman Pankaj Mohindroo. “The mobile phone is no longer aspirational; it is essential digital infrastructure for education, healthcare, financial inclusion, and governance,” he said.

The association noted that the GST increase in 2020 has hurt affordability and slowed demand, reducing annual consumption from 300 million units to about 220 million units. Domestic manufacturing, however, has surged, making India the second-largest mobile phone producer globally, with output rising from ₹18,900 crore in FY15 to ₹5.45 lakh crore in FY25. Exports have crossed ₹2 lakh crore.

ICEA said restoring mobile phones to the 5 per cent GST bracket would align with the original GST design principle, which pegged tax incidence at pre-GST levels of about 6 per cent. “This is not a concession, it is a correction,” Mohindroo said, adding that affordability will boost domestic demand and strengthen India's USD 500 billion electronics manufacturing vision.