The prices of TVs will dip by 3-4 percent as the government has scrapped import duty on open cell LED TV panel. The TV manufacturers and trade bodies said the move would boost sales of TVs in the festive season. Additionally, the move will also allow the companies to push sales for bigger TV sets. The TV players have also announced to pass the benefits to the consumers.
“This change in duty structure will also make imports competitive since zero duty from ASEAN under FTA was in competition with the general duty of 5 percent,” Pankaj Mohindroo, Chairman, the India Cellular and Electronics Association (ICEA) said in a statement.
“Since open cells form a major share of the total manufacturing cost of TVs, the move will allow us to pass the benefits to the end consumer which would be about 3-4 percent reduction in price thus providing the necessary thrust to the market,” said Manish Sharma, President and CEO, Panasonic India and South Asia.
“Reform will lead to the arrest of the grey market and push to organized manufacturing,” Mohindroo said. Furthermore, the Finance Ministry has also waived custom duty on a few things. These include import of chip on film, Printed Circuit Board Assembly (PCBA) and Cell (glass board/ substrate), which are leveraged to manufacture open cell TV panels.
“We had been eagerly waiting for this as the earlier 5 percent duty on open cell was not justified. This will drastically boost the sales of the TVs in the coming months and will also allow brands to push sales for bigger TVs,” added Arjun Bajaj, Director, Videotex International. “This will further help India to become an export hub in future”, Bajaj added.
“We are confident that the industry is poised to grow with this initiative as prices will turn out even more attractive for customers. Therefore we welcome this initiative as it reinforces Detel’s vision of connecting 40 crore unconnected Indians,” Yogesh Bhatia, MD, Detel noted.
“We will continue our focus to support the establishment of a sizable electronics hardware manufacturing hub in India specially relating to various electronics items other than mobile handset eco-system, which is undoubtedly $210 billion opportunity”, said Mohindroo.
– With inputs from IANS