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 (%)|
|Television cameras, digital camera etc.||10||15|
|Smart electricity meters||10||15|