~ Expected to boost the local manufacturing and Make in India initiative
~ A big win for the domestic TV industry
Consumer Electronics and Appliances Manufacturers Association (CEAMA), an apex body representing Consumer Electronics, Home Appliances and Mobile Industry, welcomed the amendment made by the Government in the custom duty structure of open cell — a critical television component. LED TVs comprises one of the largest segments under the entire domain of Appliance and Consumer Electronics accounting to a volume of almost 15 million with an estimated sale value of almost Rs. 40,000 crores. The LED TV industry is also one of the biggest employers with an estimated employment of 50,000 people directly and many more indirectly through the ancillary units.
Given the above facts, the reduction of custom duty on open cell from 5% to 0% shall prove to be beneficial as presently there is no local manufacturing of Open Cell in the country. This is major boost to the industry and entire Make in India vision. While a substantial portion of the demand for TVs is being met through local production, the option of sourcing from FTA countries remains a threat. The reduction in open cells duty will help in arresting this and thereby safeguard investments made in India by providing a level playing field for domestic manufacturers.
Mr. Kamal Nandi, President, CEAMA and Business Head & EVP, Godrej Appliances, said, “CEAMA is committed to promote indigenous manufacturing of TVs in the country and the amendment shall provide the necessary boost to the Government’s initiative of ‘Make in India’ and shall also attract potential investors. CEAMA will work closely with government to formulate and facilitate phased manufacturing of TVs and end-to-end manufacturing of Televisions in the country. Implementation of the PMP will safeguard the interests of domestic manufacturers and will attract new investments in the sector.”
“CEAMA has been making efforts to increase domestic manufacturing of televisions and its subparts since 2016. It has been in discussion with government on a phased manufacturing plan of TVs since 2017 and submitted a plan in 2018. Various representations and delegations met with the government to convey the benefits of such a plan,” said Mr. Rohit Kumar Singh, Secretary General, CEAMA.