The central government has taken an important decision to increase the production of TVs domestically. 5% import duty on Open Cell TV panels lifted. The Center expects to increase its domestic production based on imports. With the cancellation of the import tariff, TV manufacturing costs will be reduced by up to 3 percent. Also, the Finance Ministry has announced that it will abolish import tariffs on chip-on-film, printed circuit board (PCBA) and cell (glass board/substrate) used in the manufacture of open cell TV panels.
The industry has for some time wanted to abolish import tariffs as demand drops. A notification on Wednesday issued a notification that the 5% import duty on open cells on LCD and LED TV panels, which is 15.6 inches high, is currently in effect. The leading Japanese company, Panasonic, has announced that it will transfer this benefit to customers. Prices are expected to fall by 3–4%. 60–70% of the cost of manufacturing LED TVs is to be spent on open cell panels. Most of the TV manufacturers in the country import them. In June 2017, the Center introduced this import tariff on TV panels. The national TV market is worth over Rs 22,000 crore.
Positive results...
Experts say the center's decision is positive. This is because the largest electronics manufacturer, Samsung Electronics, closed its TV manufacturing unit in India last year and moved to Vietnam. The main reason for this is customs duty on open cell panels. Reduced domestic demand has had an impact on TV sets. The slowdown on the one hand and increased competition on the other are the negatives of the GST rate on big TVs. Experts believe that the decision taken by the Center will provide some relief to manufacturers.
The industry is heartbreaking
The decision to remove the import tariff on TV panels before the festive season has made the industry happy. The government's decision will help reduce the cost of TV production and increase domestic production. The industry welcomes this decision. This reduces the pressures on TV making. If this benefit is transferred to consumers, demand in the industry will rise. The announcement came from the government at a time when TV sales were flat last year. The bulk of the cost of making TVs is spent on open cells. Due to the government's decision, the industry can transfer this benefit to consumers. Prices are likely to drop by 3-4%, according to Panasonic India South Asia President and CEO Manish Sharma. Manish Sharma asked the government to reduce the GST rate on TVs over 32-inch to 12% from the current 28% to make the prices of TVs more accessible. However, rates may not be available during the festivities. He said stocks are already ready for the festivities. The impact on new imports is up to 3 percent.
Make Meat India
LG Electronics India said the government's decision would boost manufacturing in India. This is a very positive evolution. LG Electronics Electronics India Director Yunchalpark said that this is a very promising model for manufacturing in India. Sony India also claims that the government's elimination of import tariffs is helping their efforts to boost TV production in India. Sony India has long been committed to the Government's Make India program. Withdrawal of import tariffs on TV open cell panels will boost local manufacturing. Sony India MD Sunil Nayyar said that we can take further steps towards this. Higher India President Eric Braganza said the industry has been in demand ever since. Any move to promote growth is welcome.
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