Union Budget 2025: TVs to get more expensive in India as custom duty rises

In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman announced significant changes to customs duties to align with the 'Make in India' initiative and address the inverted duty structure. She stated, "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% to 20% and reduce the BCD to 5% on Open Cell and other components."

This move aims to encourage domestic manufacturing by making the import of finished IFPDs more expensive while reducing the cost of importing essential components for local assembly. The increase in Basic Customs Duty (BCD) on IFPDs is expected to make imported flat-screen displays, including certain televisions and monitors, more costly for consumers.

Reflecting on previous measures, the Finance Minister noted, "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% to 2.5%. To further boost the manufacture of such Open Cells, the BCD on these parts will now stand exempted."

By exempting customs duties on parts of Open Cells, the government aims to lower production costs for domestic manufacturers, thereby promoting local assembly and production of LCD/LED TVs.

Benefits to Local Manufacturers:

• Enhanced Price Competitiveness: The increased duty on imported IFPDs makes imported finished products more expensive, thereby providing a competitive edge to domestically produced units.
• Cost Reduction in Component Sourcing: The reduction and exemption of BCD on Open Cell components lower the production costs for local manufacturers, enabling them to offer products at more competitive prices.
• Encouragement for Domestic Production: These duty adjustments incentivize manufacturers to invest in local production facilities, aligning with the 'Make in India' initiative.

The move is expected to benefit local manufacturers like Dixon Technologies and Onida Electronics.