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India Hikes Import Duty on Display Panels to 20% to Boost Local Manufacturing

The Finance Ministry has increased the Basic Customs Duty on flat panel displays to 20% to strengthen domestic manufacturing and correct an inverted duty structure. Simultaneously, it reduced the duty on open cells and other key components to 5% and fully exempted parts for open cell manufacturing. This policy is designed to incentivize local production of display panels and build a self-sustaining ecosystem. The move pressures manufacturers to localize supply chains and aims to position India as a competitive exporter of high-tech hardware.

Key Points: India Raises Customs Duty on Electronic Displays to 20%

  • Customs duty on flat panel displays raised to 20%
  • Duty on key components reduced to 5%
  • Aims to boost domestic electronics manufacturing
  • Seeks to correct inverted duty structure
  • Follows successful smartphone sector blueprint
2 min read

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

India increases import duty on flat panel displays to 20% to promote domestic manufacturing under 'Make in India' and correct inverted duty structures.

"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 - Finance Minister"

New Delhi, January 21

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 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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Reader Comments

S
Sarah B
As someone who just planned to buy a new TV, this is disappointing news. Prices for imported models will definitely go up. I hope the domestic alternatives improve in quality quickly, otherwise consumers are stuck paying more.
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Priyanka N
The logic is sound - reduce duty on raw materials (open cells at 5%) and increase it on finished goods (displays at 20%). This "inverted duty" correction will make assembling in India cheaper than importing. Smart policy move for job creation.
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Rahul R
My only concern is execution. We need to ensure the reduced duty on components actually translates to lower costs for manufacturers and doesn't get lost in bureaucracy. The intent is good, but implementation is key. Fingers crossed.
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Aman W
This is fantastic for our electronics manufacturing ecosystem. Attracting display panel plants will complete the supply chain. Remember, China started the same way decades ago. Jai Hind!
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Michael C
Interesting protectionist strategy. While it may boost local assembly, will it foster genuine innovation and R&D for display technology, or just create more low-value assembly jobs? The policy needs to be paired with strong R&D incentives.

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