# Mobile makers seek GST cut to 5% as memory prices surge

2026-09-14T17:26:21+00:00 | Governance | Indian Opinion Desk

Corroboration: 3 independent outlets

The mobile phone industry body ICEA has asked Finance Minister Nirmala Sitharaman to cut GST on phones from 18% to 5%, citing a sharp rise in memory chip prices that has pushed up entry-level handset costs by 35, 45%. In a letter dated September 2, ICEA chairman Pankaj Mohindroo said smartphone prices below Rs 10,000 now make up less than 5% of supply, hitting first-time and rural buyers hardest. Industry data show DRAM and NAND flash prices have nearly quadrupled since September 2025 as manufacturers divert supply to AI data centres. BusinessLine reports ICEA also wrote to Electronics Minister Ashwini Vaishnaw for immediate relief. The Hindu reports Apple has raised iPhone prices by 22, 25%, with some Android entry-level models seeing 100% increases. Analysts project India's smartphone shipments could fall 8, 15% in 2026. The GST Council is expected to consider the proposal at its next meeting.

## Indian Opinion Analysis

ETTelecom and BusinessLine lead with the industry's formal GST cut demand and rising memory prices, framing it as a rational policy correction to revive domestic demand. The Hindu instead leads with Apple's price hike and its dampening effect on festive sales. The first two sources downplay the pass-through to consumers via higher retail prices, The Hindu centres on the consumer impact and quotes retailers predicting a 50% festive dip. A balanced reading: the industry seeks a 13% GST cut citing manufacturing success but weak demand, while end-user prices have already risen 35, 100%. The GST Council's next meeting will decide on the rate.

## Coverage

- telecom.economictimes.indiatimes.com (neutral report) <https://telecom.economictimes.indiatimes.com/news/devices/cut-gst-on-mobile-phones-to-5-rising-component-prices-hit-affordability-industry-to-fm-nirmala-sitharaman/134240107>
  Leads with formal industry demand, frames GST cut as pro-market rationalisation
- thehindubusinessline.com (neutral report) <https://www.thehindubusinessline.com/info-tech/mobile-phone-makers-seek-13-gst-cut-amid-dip-in-demand-rising-memory-prices/article71466157.ece>
  Leads with industry demand, adds grey-market and US-India price gap angle
- thehindu.com (neutral report) <https://www.thehindu.com/sci-tech/technology/will-apples-price-hike-dampen-festive-demand/article71455965.ece>
  Leads with Apple retail price hike and festive demand warning

Tags: DRAM, GST Council, ICEA, mobile phones, Nirmala Sitharaman, Pankaj Mohindroo
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