Electronics manufacturers are calling on the government to provide comprehensive support for the local manufacturing of electronics, including the television industry.
Despite significant contributions to the economy, the TV manufacturing sector has not received the same incentives as mobile phone manufacturing, which has seen substantial growth due to government support.
Arjun Bajaj, Director of the home-grown manufacturer Videotex, highlighted the need for the long-awaited production-linked incentive (PLI) scheme to extend its benefits to televisions or to introduce alternative manufacturing incentives, particularly for smart TVs. This would help the TV manufacturing sector, which currently contributes nearly $12 billion to the economy.
Another pressing issue is the classification of televisions larger than 32 inches under the GST slab for luxury goods. Bajaj argues that this classification is outdated as televisions are no longer considered luxury items but are essential for over 200 million households in India. Revising this GST classification would make TVs more affordable and accessible to a broader population, boosting the sector.
The industry also faces challenges due to its reliance on imports for critical components like semiconductors and display fabs, primarily sourced from China and Taiwan. While the government has begun initiatives to establish semiconductor manufacturing in India, it is crucial to expedite these projects and focus on developing domestic display manufacturing capabilities to reduce dependence on imports.
Avneet Singh Marwah, CEO of Super Plastronics Pvt Ltd (SPPL), emphasised the need for simplifying GST rules, investing in job training, and changing tax brackets for consumers.
He suggested that maintaining the 15 percent corporate tax rate for new manufacturing ventures would attract both local and international businesses to set up operations in India. Expanding the PLI scheme in the electronics sector could further aid the growth of Indian manufacturers.
Marwah also proposed reducing the GST rate on LED TVs larger than 32 inches from 28 percent to 18 percent. This change aims to boost consumer spending in the electronics sector.
Additionally, including smart TVs, refrigerators, and washing machines in the PLI schemes would be important for market growth and improving manufacturing capabilities.
The Union Budget plays a crucial role in ensuring that India maintains its status as the world’s third-largest economy. India's significant contribution of $3.7 trillion to the global economy, along with its large population of young individuals, presents substantial untapped potential.
Comprehensive support for the local manufacturing of electronics, including the television industry, could unlock this potential and drive further economic growth.
By addressing these issues, the government can create a more favourable environment for the electronics manufacturing sector. This support would not only boost the local economy but also make essential electronic devices more affordable and accessible to the general population.
As India continues to grow and develop, fostering a robust electronics manufacturing sector will be key to sustaining its economic momentum and achieving its long-term goals.
The calls from electronics manufacturers for comprehensive support from the government highlight the importance of aligning incentives and policies with the needs of the sector. By doing so, India can ensure continued growth and innovation in electronics manufacturing, benefiting both the economy and consumers.
Follow us
