Economy

Government scraps import duty on open cell LED TV panels

Meenakshi Verma Ambwani New Delhi | Updated on September 18, 2019 Published on September 18, 2019

It remains unclear if customers will be able to see any price reductions immediately. Representative image   -  The Hindu

Industry welcomes the move

In a bid to encourage domestic manufacturing of electronics products, the government has decided to remove import duty on ‘open cell’ used in the manufacturing of LCD and LED televisions, which earlier stood at 5 per cent. This has been one of the key demands of the consumer durables industry as it was hurting their localisation strategies.

Avneet Singh Marwah, Director and CEO of Super Plastronics Pvt. Ltd said, “This was a long-standing demand of the industry. It will improve competitiveness of domestic TV manufacturers and bring in a level playing field. It will also deter companies from relying on CBUs imports from ASEAN countries under FTA.”

Younchul Park, Director- Home Entertainment- LG Electronics India said, “This is a very positive development, LG Electronics India welcomes this move; it will certainly boost Make in India initiative. This is announced just ahead of festive season & it will have positive impact on panel TV sales.”

Though the decision has come just before the festival season, it remains unclear if customers will be able to see any price reductions immediately. Most key players buy raw materials almost three months in advance. As companies and dealers are gearing up for the upcoming festival season, production , distribution and onboarding of inventories at stores is also planned in advance, said a senior executive.

Sunil Nayyar, Managing Director, Sony India said, “Sony India has long been committed to the government’s Make in India initiative. This withdrawal of duty on open cell provides a strong boost to local manufacturing and will help us further enhance our efforts in this direction.”

Published on September 18, 2019
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