~ Expected to boost the local manufacturing of Appliances and Consumer Electronics
Consumer Electronics and Appliances Manufacturers Association (CEAMA), an apex body representing Consumer Electronics, Home Appliances and Mobile Industry, welcomed the amendments made by the Government in the custom duty structure for a number of items – components as well as finished goods - that will encourage domestic manufacture of multiple segments of the Appliance and Consumer Electronics market.
Import of Split Air Conditioners (Indoor and Outdoor units) will each attract Customs Duty of 20%. While Outdoor units has by and large been indigenised, indoor units has yet to achieve the same degree of localisation, which will now be boosted. Imposition of Customs Duty on a number of emerging and high growth product categories such as CCTV and IPTV cameras and DVR/NVR which are largely imported will attract interest from domestic manufacturers as the import duty imposed (20%) gives them a level of protection. Loudspeakers made in India and under threat from imports will get a protection with import duty going up by 5% to 15%). Waiver of duty on capital goods for manufacture of chargers, adaptors, camera modules (for cellular mobile phones) and machinery to make Open Cells (for television sets) and Populated Printed Circuit Boards used widely in the industry, will encourage suppliers to set up manufacturing in India.
CEAMA has been making efforts to improve the domestic manufacturing eco-system of appliances and consumer electronics and a number of the announcements were recommended by CEAMA.
Mr. Kamal Nandi, President, CEAMA and Business Head & EVP, Godrej Appliances, said, “CEAMA is committed to promote indigenous manufacturing of appliances and consumer electronics in the country and the announcements in this budget shall provide the necessary boost to the Government’s initiative of ‘Make in India’. That said, we were hopeful of concrete measures that would accelerate demand. CEAMA will continue to work closely with government to formulate more policies to develop the appliance and consumer electronics industry in India.”
Governments continued attention towards skilling especially new age skill sets such as AI, Robotics will help improve the quality and quantity of skilled labour - critical to industrial growth. Rural electrification which aims to touch every household by March 2022 coupled with infrastructural push via Gram Sadak Yojana and the rural support schemes will serve as a catalyst in improving the demand for consumer electronics and appliances. Category penetration levels should therefore improve faster.
Electronics hardware production in the country increased from Rs 1.90 trillion (US$ 31.13 billion) in FY14 to Rs 3.88 trillion (US$ 60.13 billion) in FY18. Demand for electronics hardware in India is expected to reach US$ 400 billion by FY24. The above initiatives will surely serve as a major growth drivers in expansion of the segment.