The consumer electronic and domestic
appliances industry is expecting an increase in customs duty on finished
products to prevent imports and facilitate import substitution, along with
incentives for specific R&D and localization projects under the
productivity-linked incentive (PLI) scheme.

The Consumer Electronics and Appliances
Manufacturers Association (CEAMA) said the Rs 75,000 crore industry is
expecting “certain enablers” to promote domestic manufacturing.

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CEAMA president Eric Braganza said that to
further encourage local manufacturers, there should be a differential duty of
5% between parts and finished goods. This would give a much-required incentive
to local manufacturers and help in building a manufacturing base in India.

The body also demanded a road map for the duty
structure for the LED industry for the next five years to facilitate proper
planning of investments and policy interventions.

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A 200% weighted deduction for R&D
(research and development) expenditure is critical for keeping up the
technological advancement for domestic manufacturers, said Braganza. Incentives
can also be given for specific R&D and localization projects in the electronics
industry under the PLI scheme.

The industry also expects the government to
lower the GST on air conditions and TV sets (above 105 cm screen size) to the
18% tax slab.

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In line with India’s
commitment to climate goals, some manufacturers also want the government to
lower the GST slab for energy-efficient products to 12% as this would help to
drive demand and increase the adoption of sustainable appliances.

Panasonic CEO (India and South Asia) Manish
Sharma said the industry can expect an increase in import tariffs on completely
built-up (CBU) audio products. Audio technology is an emerging segment
with demand at an all-time high. He expects some tariff barriers on audio
products to encourage domestic manufacturing.

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Finance Minister Nirmala Sitharaman will
present the Union Budget 2022 in Parliament on February 1 at 11 am. Previously,
the budget was presented on the last working day of February, and former
Finance Minister Arun Jaitely changed that tradition.