Why India’s Mobile Industry Wants 5% GST: A Digital Lifeline, Not a Luxury
Why India’s Mobile Industry Wants 5% GST: A Digital Lifeline, Not a Luxury
Imagine zipping through your favorite apps on a phone that costs ₹1,000 less—just because tax dropped. That’s the mobile industry’s big bet.
Section 1: The Case for 5% GST
Mobile phones today are not status symbols—they’re survival kits: for education, banking, governance, health. ICEA calls the 18% GST “regressive.
”In a bold move, the industry argues that slashing the GST to 5% isn’t charity—it’s a smart correction to restore affordability and bridge the digital divide. As Pankaj Mohindroo, Chair of ICEA,
“The mobile phone is no longer aspirational; it is essential digital infrastructure for education, healthcare, financial inclusion, and governance.”
Section 2: Numbers That Speak Volumes
In FY15, India produced mobile phones worth ₹18,900 crore. By FY25, that shot up to ₹5.45 lakh crore. Exports fueled this surge, crossing ₹2 lakh crore.
Meanwhile, domestic sales took a hit—down from ~300 million units before GST hike to ~220 million after. That’s a 26% drop.
Section 3: GST Reform in the Fast Lane
GST reforms are on the horizon. PM Modi recently unveiled plans to simplify the tax structure, trimming slabs to mostly 5% and 18%, plus 40% for sin/luxury goods.
In this context, the 5% demand seems smart—not symbolic.
Section 4: What’s at Stake
Consumers: Lower GST means cheaper phones—especially in the Rs 10,000 bracket.
Manufacturers: Lower input taxes boost working capital, local value addition, and global competitiveness.
Digital Mission: Better access means deeper inclusion—health, education, financial services.
Conclusion (Call-to-Action)
The question isn’t just about tax—it’s about India’s future. Affordable smartphones = affordable opportunity.
GST shouldn’t just be about revenues—it must reflect social imperatives. Will the government answer the industry’s phone call? Only time will tell—but the buzz is red-hot.