What is India's new Basic Customs Duty on flat panel displays?

India has increased the Basic Customs Duty on flat panel displays to 20%.

How does the new policy affect open cell manufacturing in India?

The policy reduces the BCD on open cells and key components to 5%, and parts for open cell manufacturing are now fully exempted, boosting local production.

What is the goal of India's increased display duty?

The goal is to promote domestic manufacturing, localize supply chains, and build a self-sustaining display ecosystem in India.

Home / Business and Economy / India Boosts Display Duty, Eyes Local Manufacturing

India Boosts Display Duty, Eyes Local Manufacturing

21 Jan

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Summary

Basic Customs Duty on flat panel displays increased to 20%.
Duty on open cells and key components reduced to 5%.
Policy aims for localized supply chains and a self-sustaining display ecosystem.

India Boosts Display Duty, Eyes Local Manufacturing

India's Union Finance Ministry has announced a significant policy shift, increasing the Basic Customs Duty (BCD) on flat panel displays to 20%. This measure also rectifies an inverted duty structure and aims to propel domestic electronics manufacturing. Concurrently, the BCD on open cells and crucial components has been reduced to 5%, with parts for open cell manufacturing now fully exempted from BCD.

This strategic adjustment is modeled after the successful blueprint implemented in the smartphone sector, which transformed India into a global manufacturing hub. While imported high-end panels may face short-term price increases, the long-term objective is to stimulate substantial domestic investment in the display ecosystem. Local and international manufacturers are incentivized to localize their supply chains to avoid the increased duty on finished goods.