The Ministry of Finance has raised the custom duty on a number of electric items on Friday, to protect the domestic manufacturers. As per the announcement, the custom duty has been hiked on television sets, Mobiles, Water heaters, Microwaves and many others. This move will give a huge boost to the ‘Make in India’ initiative.
The custom duty on television, monitors and projectors has been doubled to 20%. Also, the LED Panels (Modules) will attract 7.5% custom duty. In the same way, the custom duty on Mobile Handsets has been increased to 15%.
This move by the Ministry of Finance will encourage the global consumer companies to look for manufacturing solutions within the country rather than importing them.
Mr. K.S. Raman, Former President, Consumer Electronics & Appliances Manufacturing Association (CEAMA) expressed his heartiest congratulations to the Government on the decision to raise the custom duty on the host of electronic goods like televisions, Mobile Phones, water heaters. He also said that, “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.”