Customs duty on electronic goods increased to 20 per cent: Finance Ministry

New Delhi [India], January 21 (ANI): In a decisive move to solidify India's position as a global electronics hub and to promote domestic manufacturing of electronic goods, the Union Finance Ministry has announced the increase of Basic Customs Duty (BCD) on flat panel displays to 20 per cent. The move will also correct the inverted duty structure on the goods.

The Ministry also reduced the BCD on open cells and key components to 5 per cent.

"In line with our 'Make in India' policy, and to rectify inverted duty structure, I propose to increase the BCD on Interactive Flat Panel Display (IFPD) from 10 per cent to 20 per cent and reduce the BCD to 5 per cent on Open Cell and other components," the Finance Minister said in a post on social media platfom X.

To further boost local manufacture of Open Cells for LCD/LED TVs, BCD on parts of Open Cells is fully exempted, building on earlier reductions, it said.

"In 2023-24 budget, for the manufacture of Open Cells of LCD/LED TVs, I had reduced the BCD on parts of Open Cells from 5 per cent to 2.5 per cent. To further boost the manufacture of such Open Cells, the BCD on these parts will now sand exempted," the ministry tweeted.

This policy evolution follows a successful blueprint established in the smartphone sector, where phased manufacturing programs successfully turned India into the world's second-largest mobile producer. While the immediate impact may lead to a short-term price hike for imported high-end panels, the long-term outlook suggests a surge in domestic investment.

Local manufacturing giants and global OEMs are now pressured to localize their supply chains to avoid the 20 per cent penalty on finished goods. Ultimately, this move seeks to build a self-sustaining display ecosystem that not only meets domestic demand for LCD and LED products but also positions India as a competitive exporter of high-tech hardware. (ANI)

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