Import duty hike on consumer durables, ‘Make in India’ drive to get a boost

Government has increased the rate by 5-10%; TV, microwaves, LED, mobile phones and others to be impacted

Dec 19, 2017 02:12 IST India Infoline News Service

In order to curb the rising imports of and to put thrust on ‘Make In India’ drive, the government has increased the basic custom duty on many key electronic items.

It has hiked the duty on nine major categories, namely, smartphones, television sets, TV panels, microwave, LED lamps, digital cameras, electricity meters, set-top box and lamps and lighting fittings.

This move is expected to boost domestic manufacturing industry and give a push to the Make in India initiative.

It will also encourage the foreign companies to start their manufacturing facilities in India.

Companies may resort to price hikes in order to pass on the increased burden in the near term where local manufacturing is not feasible.

The government has increased the rate by 5-10% across the aforementioned categories, details in the table below:

Category Old rate (%) New rate (%)
Microwave ovens 10 20
Mobile phones 10 15
Television cameras, digital camera etc. 10 15
CCTV/IP camera 10 15
TV 10 20
LED lamps 10 20
Smart electricity meters 10 15
LCD/LED/OLED/TV panels Exempted 7.5

Related Story