LED Price Hike: Domestic manufacturing companies say that this decision is ‘shocking’ and is in the ‘wrong direction’. Because the increase in duty will not help or encourage domestic manufacturing in any way. Domestic companies are still dependent on other countries such as China, South Korea and Vietnam for components.
New Delhi: The prices of LED bulbs and LED products may increase. The government has increased the custom duty on imported components used in its manufacturing, due to which the prices in the domestic market may increase. Domestic manufacturers have now gone to the government regarding this issue. However, the government increased the custom duty so that domestic manufacturing can be promoted.
Custom duty doubled in budget
Let us tell you that in the budget presented on February 1, Finance Minister Nirmala Sitharaman doubled the custom duty on LED manufacturing drivers and MCPCB (metal core printed circuit board), increasing it from 5 percent to 10 percent. . It is now being said that the cost of LED bulbs and other products made in the country may increase due to increase in custom duty.
LED products prices will increase
Sumit Joshi, president of the Electric Lamp and Component Manufacturers Association (ELCOMA), says that the government’s decision to increase tariffs on inputs and parts used in manufacturing LED light products will have an impact on the products being manufactured in the domestic market. Will increase in the short term ‘Sumit Josha says that almost all electronic components are imported from abroad due to lack of domestic component ecosystem in India. He says that “Custom duty on components used in the manufacturing of LED lights and components such as MCPCBs from 5 percent to 10 percent will automatically increase the prices of the products manufactured domestically.”
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No increase in tariff on finished goods
The government wants to encourage domestic manufacturing by increasing the custom duty on LED components. Because when the component manufacturing ecosystem is ready in India, it will be beneficial to the domestic manufacturers here in the long term. Sumit Joshi says that we will go to the government on this issue and appeal that the tariff on finished goods in this category should be increased so that local manufacturers get support and in the true sense, India can become self-sufficient.
‘This step of the government is shocking’
Parag Bhatnagar, Senior Vice President of Havells India, says that this decision is ‘shocking’ and ‘in the wrong direction’ for the industry. Because the increase in duty will not help or encourage domestic manufacturing in any way. Currently, some components have their own limitations for local manufacturing of LED and other electronic products in India, these components are currently sourced from other countries such as China, South Korea and Vietnam.
‘LED products prices to increase 5-10%’
Parag Bhatnagar says that ‘the increase in custom duty will put additional burden on companies making LED lightning products in the country. Companies that import directly from China and other countries will not face any additional burden, this will not serve the purpose of local manufacturing. 35-40% component is imported to make LED products. On how much the prices will increase in the domestic market, he says that ‘prices can increase from 5 to 10 percent for different brands.’
The LED lightning sector in India is worth about Rs 10,000 crore, of which 60% is from the consumer sector while the remaining 40% is for commercial lightning.
