NEW DELHI: In a bid to strengthen electronic manufacturing in India, Finance Minister Nirmala Sitharaman announced the exemption of parts used in the manufacture of Open Cells for LCD/LED TVs from Basic Customs Duty (BCD). Previously, the BCD on Open Cells was set at 2.5 per cent.
During her budget speech on Saturday, Sitharaman also outlined several other changes to the duty structure for various electronic components. The Basic Customs Duty (BCD) on Interactive Flat Panel Displays (IFPDs) will rise from 10 per cent to 20 per cent, while the BCD on Open Cells and other components will be reduced to 5 per cent.
“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 stand exempted,” said Sithraman.
Additionally, Sitharaman proposed the inclusion of 35 additional capital goods for electric vehicle (EV) battery manufacturing and 28 additional capital goods for mobile phone battery manufacturing to the list of exempted capital goods. This move is expected to promote domestic manufacturing of lithium-ion batteries, crucial for both mobile phones and electric vehicles.
To address classification disputes, Sitharaman also proposed reducing the BCD on Carrier Grade Ethernet switches from 20 per cent to 10 per cent, aligning it with the duty structure for Non-Carrier Grade Ethernet switches.
These measures are expected to further encourage domestic production and innovation in India’s electronics sector, supporting the government's 'Make in India' initiative.