General
Indian Manufacturers to benefit from Hike in Customs Duty
Mumbai, December 17th, 2017: On Friday, the Finance Ministry of India issued a notification announcing raise on customs duty on a host of electronic goods in order to give a push to Make in India initiative. As per the notification, the customs duty on products like Television sets, mobiles, microwaves and many others have been increased.
The customs duty on television set has been increased to 20% from 10%, while the additional duty on assembled LED panels (modules) has also been increased from nil to 7.5%. Similarly, the duty on monitors and projectors has been doubled to 20%, while for the mobile handsets the duty has been raised to 15%.
It is expected that the move will force global players to look for manufacturing solution within the country.
“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 manufacturer 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).