Govt scraps Import Duty on open cell LED TV panel
The Ministry of Finance has withdrawn the import duties on open cell LED panels used in the production of television sets. This is expected to lower the input costs for TV makers who have been complaining about a slump in demand.
The Finance Ministry has also scrapped customs on goods for use in the manufacturing of liquid crystal display (LCD) and diode (LED) TV panels such as film, printed board assembly (PCBA); and cell (glass board/substrate).
Reduction in Manufacturing Costs
Imported open cell panels constituted over 60-70% of the cost of manufacturing LED TV sets. This included an import duty of 5%.
Since open cells panels are not manufactured in India and companies relied on imports of these key components of LED television sets.
The withdrawal of import duty could lead to a drop in prices of TV sets between 2-4%, depending on the category.
The cost-benefit due to withdrawal of import duty is expected to be passed on to the customers in immediate to long term depending on the respective brand’s inventory
Boosting Local Production
The import duty which pushed the manufacturing cost pushed some electronics makers to import television sets from neighbouring markets such as Vietnam and Thailand to avoid duties on open cell panels.
India’s LED TV market is estimated at 15 million units. A substantial portion of the demand for TVs is being met through local production. But the option of sourcing from FTA countries is a threat.
The reduction in open cells duty will help in arresting this trend and aid in safeguarding the investments made in India by providing a level playing field for domestic manufacturers.
These measures by the Ministry of Finance ahead of the festive season are a good indicator for the industry.
What is the objective of RBI’s new 20000 cr-special OMO?
In a recent announcement, the Reserve Bank of India declared its intention to conduct simultaneous p...
What is the special OMO which has been launched by the RBI? How does it impact the economy?
The Reserve Bank of India recently declared that it is going to conduct simultaneous purchase and sa...
IEA highlights 30% Drop in Energy Demand in India
The International Energy Agency highlighted a 6% decline in global energy demand and a 30% drop in I...
Business Interruption Insurance
In light of the unprecedented economic losses due to the lockdown, businesses in India are looking a...
Economic situation to be the worst since the 1997 Asian Financial Crisis
The recently released World Bank report predicted that the economic situation in the near future cou...
|View All E-Books: Recent Release|