Domestic manufacturers have said they are urging the government to address the issue immediately. The decision to increase tariffs on inputs and components to manufacture LED lighting products will result in short-term price increases for locally manufactured lighting products, as all electronic components are imported into India due to a shortage of local components.
- An increase in customs tariffs on components could increase the price of LED lighting products, including bulbs, by 5-10 percent.
- Currently, almost all electronic components are imported into India due to lack of local components.
- Locally manufactured lighting products will have a price increase in the short term.
Lighting a house is going to be expensive. Due to the increase in custom duty on certain components, the prices of LED light products, including bulbs, can increase by 5-10 percent. Domestic manufacturers have informed about this. However, the government has been urging the government to resolve the issue immediately. Sumit Joshi, president of the Electric Lamp and Component Manufacturers Association (Alcoma), said, “The government’s decision to increase the tariffs on inputs and components to produce LED lighting products will increase short-term prices for locally manufactured lighting products.
The cost of locally manufactured goods increases 5 to 10 percent following the customs duty on imports of components including drivers and MCPCBs used to manufacture LED lights, Elkoma said.
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Step in the wrong direction
Joshi is Vice President and Managing Director of Signature Innovations India (formerly known as Philips Lighting India). “The government’s decision has taken the industry by surprise,” says Parag Bhatnagar, senior vice president and head of Havells India SBU. This is a step in the wrong direction as domestic tariffs are not getting any help and encouragement due to the increase in tariffs.