Hike in custom duty may impact coming festive sales, consumer durable industry

Hike in custom duty to 10 per cent on compressors, used for air conditioners and refrigerators, can be a "set back" and may have an impact on the coming festive season sales, according to the consumer durable industry.

Although, government's decision to double the basic custom duty on ACs, refrigerators and washing machines to 20 per cent from the existing 10 per cent would encourage domestic manufacturing, said the Consumer Electronics and Appliances Manufacturers Association (CEAMA).

"Increase in the basic customs duty on ACs, refrigerators and washing machines will bring back the emphasis on Centre's 'Make in India' vision at the same time drive momentum for local manufactured goods and develop new capacities in India," CEAMA President Manish Sharma said.

However, he also added: "Price rise for compressors can be a set back for the industry but, we are keeping a close track of the price impact as festive season is around the corner."