Ministry of Finance, Govt. of India issued a statement on Friday to announce hike in customs duty on a number of electronic items to boost Make in India initiative. The customs duty has been increased on Television, mobiles, microwaves and many others products, as per the statement.
There’s an increase of customs duty from 10% to 20% on televisions and also additional duty on assembled LED panels (modules) from nil to 7.5%. While the customs duty on monitors and projectors has been doubled similarly to 20%, duty on mobile handsets has been raised to 15%.
It is expected that the move will force major global players will look for manufacturing solutions in India to cope with the hike in duty.
“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 initiative by our Government. It will encourage foreign players to manufacture products in India rather than import them as the prices are expected to go up, especially for televisions.
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 in 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. Make in India project by our government is a great project and to make it successful the government has started implementing the right environmental requirement.” said Mr. K.S. Raman, Former President, Consumer Electronics & Appliances Manufacturing Association (CEAMA)