The Government’s move to fully exempt LCD and LED TV panels below 19 inches from basic custom duty and also exempt colour picture tubes for Cathode Ray TVs will help domestic TV makers.

Also, buyers looking to buy smaller size LCD and LED and conventional colour TV can expect them to get cheaper.

Key international TV makers have very little presence in the sub-19 inches category as they have been working on upgrading consumers to bigger size TVs, whose prices have been coming down over the years.

This move will largely benefit domestic players such as Videocon and Onida with a presence in smaller size flat panel TVs, who expect to see growth for this segment from smaller cities and hinterland where consumers are still upgrading from CRT TVs to flat panel TVs.

Besides smaller players such as Arise and Salora, who continue to make CRT TVs, besides moving to LED manufacturing are also expected to benefit, said analysts.

Anirudh Dhoot, President, Consumer Electronics and Appliances Manufacturer Association (CEAMA) and Director, Videocon, said, “The FM in his maiden budget speech spreads cheer to the consumer durable and home appliances sector. Not only has the budget aimed to encourage manufacturing in the sector, it has also encouraged TV manufacturing in the country by reducing the import duties on smaller sizes of LCD/LED Panels and Colour Picture Tubes to zero, which was earlier 10 per cent. Also, the basic custom duty on LCD/LED panel below 19 inch has also been removed. The provisions will also allow the customer to pay less on lower size LCD/LED & CRT. TV sets.”

For instance, the 14-16 inch LED or LCD TVs are currently priced in the range of ₹7,200-₹8,000. Such TVs could get cheaper by about ₹350-500, depending on the brand and size, believe industry players. In addition, CRT TVs, which start from about ₹4,000 and go up to ₹7,000, could see a price reduction of ₹100-150.

Manish Sharma, MD, Panasonic India, said CEAMA recommendations like reduction of custom duty on LCDs & LEDs below 19 inch from 10 per cent to 0 per cent have been accepted which will encourage the local production. These reforms coupled with the extension in the time period of reduced excise duty and exemption of flat copper wires from excise duty will further boost the future growth.

Arise India MD Avinash Jain said this will help revive manufacturing of TVs in the SME sector and encourage consumers to shift to LED and LCDs. “It has signalled encouragement to production of LCD and LED TV in the country.” Arise India makes both CRT TVs as well as LCD and LEDs.

However, a senior executive with an international consumer durable maker said that buying bigger size flat panel television is fast becoming aspirational for not only younger generation but also consumers in smaller towns and cities.

Suresh Khanna Secretary-General of CEAMA said that though CRT market is still fast shrinking, this move by the government will help smaller players especially those who are still making CRT TVs.

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