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India Raises Display Import Duty to 20% to Boost 'Make in India' Electronics

Ahead of the upcoming Union Budget, the Finance Ministry has highlighted its previous decision to increase the Basic Customs Duty on Interactive Flat Panel Displays to 20%. Simultaneously, it reduced the duty on open cells and their key components to 5%, with some parts now fully exempted. This strategic move is designed to correct an inverted duty structure and incentivize domestic manufacturing of display panels within India. The policy mirrors successful initiatives in the smartphone sector, aiming to build a self-sustaining display ecosystem for both local consumption and export.

Key Points: India Hikes Customs Duty on Flat Panel Displays to 20%

  • Duty on finished displays raised to 20%
  • Duty on open cell parts cut to 5% or exempted
  • Aims to fix inverted duty structure
  • Boosts domestic electronics manufacturing
2 min read

Finance Ministry highlights basic custom duty rates on Interactive Flat Panel Displays and Open Cells ahead of new Budget announcements

Finance Ministry highlights duty changes on displays & open cells to boost local manufacturing ahead of Budget. Key move to fix inverted duty structure.

"In line with our 'Make in India' policy... I propose to increase the BCD on Interactive Flat Panel Display from 10 per cent to 20 per cent - Finance Ministry"

New Delhi, January 21

Before the new Budget for the country is announced on February 1, the Ministry of Finance took to X to highlight the prior customs duty rates announced. During the previous Budget sessions, 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 announced an increase in the Basic Customs Duty on flat panel displays to 20 per cent. The move was aimed at correcting 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 was 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 localise 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

P
Priya S
Good policy, but I hope the quality of locally made panels matches the imported ones. Also, will this make smart boards more expensive for our schools? Need clarity.
V
Vikram M
Finally correcting the inverted duty structure! This was long overdue. It will force companies to set up shop here and create jobs. Jai Hind!
R
Rohit P
As a consumer, I'm worried. TV prices are already high. This 20% duty on finished displays might make new TVs even more costly. Hope domestic production ramps up fast.
S
Sarah B
Interesting to see India following a similar industrial policy path. Reducing duty on components while raising it on finished goods is a classic strategy to build local capacity. Will be watching the results.
K
Karthik V
The exemption on parts for Open Cells is the key detail here. It shows the government is thinking about the entire supply chain, not just slapping on tariffs. Thumbs up! 👍
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Nisha Z
Respectfully, I have concerns. While the intent is good, we need strong safeguards against companies just doing superficial assembly to claim 'Make in India' benefits. We need genuine manufacturing, not just packaging.

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