Mumbai, December 18, 2017 (GPN) : With a vision to push manufacturing within the country, last week Finance Ministry of India raised Customs Duty on a variety of finished electronic goods. The customs duty on televisions has been doubled to 20% whereas the additional duty on assembled LED panels (modules) has gone up to 7.5% from zero. Customs duty on mobile handsets has been raised to 15% from existing 10%, while on water heaters and hair dressing instruments has been doubled to 20%.
It is expected that the hike in customs duty will also lead to an increase in the product price, especially in mobile handsets. With India being the second largest smartphone market in world, the global handset companies who have been importing the products for long will now have to look for manufacturing solutions within the country. They will either have to outsource it to existing Indian manufacturers or set up new manufacturing base in the country. This will not only boost manufacturing in India, but will also lead to job generation.
“Government’s decision to raise customs duty on some finished goods is a positive step towards Make in India initiative. With this hike international companies will have to look up for a solution locally rather than importing the products. Thus, both big and small companies which manufacture within India will be benefited. Leading manufacturers like Videocon, which has a strong manufacturing base spread across the country will benefit immensely. The move will help in making India a global manufacturing hub.” said Mr. C.M. Singh, Managing Director, CMS Electronic Junction, a leading chain of electronic stores across the Hindi Heartland.
Prices of televisions will also go up, especially for screen sizes 40 inches and above. The International players will have to look at the home grown companies to outsource manufacturing within the country. Else, price hike is the only option which is not a preferred solution in a price sensitive market.
“I would like to congratulate Government on the decision to raise customs duty on some electronic items including television, mobile phone, and water heater. This move will definitely give a boost to Manufacturing in India which will in-turn push Make in India. This will encourage foreign players to manufacture products in India rather than import them as the prices are expected to go up, especially for television sets. With this move, Indian manufacturers who make products with complete backward integration will benefit immensely. Manufacturers such as Videocon, one of the leading Indian manufacturers with a large workforce will be immensely benefitted as they have a very strong manufacturing base spread across the country. Even smaller manufacturers like Vierra will be benefitted from this step. Overall it is a great step to boost manufacturing in the country and will also lead to job generation.” said Mr. K.S. Raman, Former President, Consumer Electronics & Appliances Manufacturing Association (CEAMA).ENDS