Union Budget 2024-25: Electronics Industry Seeks Comprehensive Support for Local TV Manufacturing
Electronics manufacturers urged the government to prioritize comprehensive support for local manufacturing of electronics, including the television industry, similar to the support provided for mobile device manufacturing. Despite the TV manufacturing sector contributing nearly $12 billion to the economy, it has not yet received comparable incentives.
Arjun Bajaj, Director of home-grown manufacturer Videotex, emphasized the need for the long-awaited production-linked incentive (PLI) scheme to extend its benefits to televisions or provide alternative manufacturing incentives, particularly for smart TVs. “The classification of TVs larger than 32 inches under the GST slab for luxury goods is outdated. Televisions are no longer a luxury item but a necessity for over 200 million households in India. Revising this GST classification would make TVs more affordable, thereby boosting the sector and making these essential devices more accessible to a broader population”, Bajaj suggested.
The TV industry relies heavily on imports for critical components such as semiconductors and display fabs, predominantly sourced from China and Taiwan. While the government has initiated efforts to establish semiconductor manufacturing in India, it is crucial to expedite these projects and also focus on developing domestic display manufacturing capabilities, industry players noted.
Marwah also suggested 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. Expanding PLI schemes to include smart TVs, refrigerators, and washing machines is also important for market growth and improving manufacturing capabilities”, he added.
The budget holds a critical role in ensuring India maintains its status as the world's third-largest economy. With India's contribution of $3.7 trillion to the global economy, within a total of $100 trillion, and its large population of young individuals, there is substantial untapped potential.
Electronics manufacturers believe that comprehensive support and favorable policy changes will not only enhance local manufacturing capabilities but also reduce dependency on imports, ultimately strengthening India’s position in the global electronics market.
As the government prepares the Union Budget, the electronics industry remains hopeful for policies that will stimulate growth and innovation, ensuring sustainable development and economic prosperity.
