India, Sept. 15 -- Mobile phone industry body India Cellular and Electronics Association (ICEA) has written to the Government seeking a reduction in GST on mobile phones to 5 per cent from the current 18 per cent amid a decline in domestic demand, especially due to rising memory chip prices.

ICEA, in a letter to Finance Minister Nirmala Sitharaman dated September 2, said India is now the world's second-largest mobile-phone manufacturer by volume, and mobile phones became the country's largest export product in FY 2025-26.

The industry body, which represents the majority of mobile phone manufacturers, said domestic demand, however, has not kept pace with manufacturing and exports, as handset consumption has declined, replacement cycles h...