The consumer appliances industry has asked the government to extend excise duty benefits for another year and provide import duty relief on various raw materials.
"We have asked the government in our budget recommendations to extend excise duty relief for one more year. The products have become cheap and it would help to increase consumerism, which would help the industry," CEAMA outgoing President Anirudh Dhoot said.
To stimulate growth in the capital goods and consumer goods segment, previous UPA government in its interim budget, had announced a reduction in excise duty to 10 per cent from 12 per cent on a range of goods till June 30. It was later extended for six month by the new government.
"We have also asked the government to reduce import duty on various raw material used by the appliances industry for compressors, washing machine motors etc," he said, adding that cheap output of goods would help create further demand.
CEAMA is projecting electronics industry to grow to USD 125 billion by 2017.
Taking up 'Make-in-India' call by the government, the manufacturers are going to increase the ratio of their localised component.
"The consumer and home appliances industry uses around 60 per cent local components for refrigerators, washing machine, micro ovens etc and LCD/LED TV has 40 per cent localised components. We would try to increase it further and in the next five years we would reduce our dependency on import up to 10 per cent," said Dhoot who is also Director Videocon Industries.
The association has also sought for a regulator for brick & mortar and e-tailing format on the lines of Brazil, Turkey, Indonesia.
"The sector needs a fair play between the competition of brick & mortar and e-tailing," he said on the sidelines of CEAMA's annual function.
Union Minister of State for Defense Rao Inderjit Singh, who was present in the function, said that India has potential to develop and manufacture electronics hardware for global markets.
"Advancements in the electronics sector also contributes in strengthening country's defence sector. The way forward for electronics industry is a healthy relationship between the government and the industry to put India in a strong, dominant position in the global electronics map," he said.
