Indian electronics players seek tax reductions and export opportunities to sustain the ‘Made in India’ momentum and compete with challenges posed by Chinese brands
The spike in ‘Made in India’ items seen in the Indian sector last year, combined with the exit of numerous Chinese brands, has created opportunities for local players. However, competing directly with Chinese brands remains a challenging task.
In tomorrow’s Interim Budget expectations, the players present in the electronic sector are looking to explore export opportunities and reduced import duties.
“Addressing the tax structure on televisions is crucial that is currently taxed at 28 per cent on TVs larger than 32 inches, a universal reduction to 18 per cent is recommended, especially considering the expanded role of television in education and information dissemination,” said Ankit Maini, Managing Director – Veira Group.
H. S. Bhatia, Managing Director, Kelwon Electronics & Appliances also believes that lowering GST rates, particularly on products labeled as luxury items, such as air conditioners, refrigerators and larger-sized LED TVs, from 28 per cent to 18 per cent, could stimulate increased consumption, according to
“A comprehensive approach that addresses both MSME concerns and consumer-centric measures will contribute to a more resilient and dynamic economic landscape,” Bhatia said.
The Production Linked Incentive (PLI) schemes and various manufacturing incentives have already proven instrumental in supporting the consumer electronics industry, reflecting an impressive 53 per cent year-on-year (YoY) growth in the first half of the calendar year 2023. To elevate the industry to international standards, additional support geared towards the export of ‘Made in India’ products is crucial.
“Critical to the success of the electronics manufacturing sector will be strategic investments in infrastructure and technology. Tax advantages and streamlined legal processes are imperative for the manufacturing sector’s vitality. A key focus area must be ensuring self-reliance in cutting-edge technologies to facilitate continuous local manufacturing,” said Ashok Rajpal, Managing Director, Ambrane India.
On the other hand, Lalit Arora, Co-founder, UBON said that despite the government’s recently enacted policies, such as lowering corporation tax rates and introducing PLI programmes that target particular categories.
“The demand for some finished white goods is nonetheless affected despite these efforts, mostly as a result of rising GST rates. Reducing present tax rates is essential to addressing this issue and encouraging more demand. This is a calculated strategy that may lessen pricing pressures and encourage consumers to make more purchases,” Arora said.
According to Maini, the holistic approach fosters a competitive local industry and contributes substantially to the country’s overall economic growth.
