The Union Budget 2019-20 is aimed at strengthening the fundamentals. From a consumer electronics industry perspective, Government of India’s move to increase basic customs duty (BCD) on indoor and outdoor unit of split system air conditioners from 10% to 20% and CCTV cameras and IP cameras from 15% to 20% is a positive step forward. This indicates the Government’s focus on boosting manufacturing in the country. Saying that, we were also expecting reduction exemption of BCD on open cells ( TV ) to give the necessary thrust to the market and reduction of GST rates for TVs above 32 inches to 18% and efficient products like Air Conditioners and Refrigerators with a rating of 4 stars and above, bringing them under the 12% slab to drive demand and consumption, while still fulfilling aspirations of consumers and small businesses.
The Government also laid emphasis on improving the electric mobility ecosystem in the country by allocating Rs 10,000 crore for the FAME II scheme and relaxing the duty on capital goods used for manufacturing of lithium-ion cells. Further, the additional income tax deduction of Rs 1.5 lakh on interest on loan for electric vehicles, is a huge impetus for consumers to consider electric vehicles as a viable alternative.