Indian government is mulling over the imposition of higher import duties on consumer durables such as televisions, washing machines and refrigerators to promote local manufacturing, buoyed by the success of such a measure in mobile phones under the phased manufacturing plan (PMP). The government feels that India stressed on the local manufacturing of such goods.
“There are suggestions that consumer durables, like electronics and telecom, should be brought under the phased manufacturing plan (PMP) and import duties be raised on some finished products,” a senior government official told ET.
This move by the government is in line with the government’s Make in India initiative, however the revision of the policy of lowering trade barriers and may lead to higher prices of goods but which is aimed at promoting manufacturing, creating jobs and raising incomes.
A panel chaired by the cabinet secretary is looking at ways to reduce India’s import dependence.
$2 billion of finished televisions, washing machines, refrigerators, vacuum cleaners, digital cameras and mixer grinders had been imported by the country in FY18. Separately, TV imports amounted to Rs 5,000 crore ($730 million at current levels), nearly a 10th of the total domestic market. Moreover, these imports were rising at a fast pace, up 35% in FY18.