Hike in import duty on LED products must to boost ‘Make in India’
To encourage domestic manufacturing and boost ‘make in India’ initiative, the government must increase import duty on LED (Light Emitting Diode) bulbs and other products, a parliamentary panel has suggested. A report on energy conservation presented by the Parliamentary Standing Committee on power said that the government should take immediate steps to disincentivize the import of finished LED products. “Customs duty and countervailing duty (CVD) on LED lamps and its components should be levied in such a manner that it encourages local production,” the panel said in its report tabled in parliament on Tuesday. At present, the duty on finished LED products is less than that on the import of raw components. And this affects the competitiveness of Indian manufacturers in the domestic as well as global markets. “Import of these items can be one of the options but this cannot be permitted at the cost of local enterprise,” the report said. In a move to encourage in-house manufacturing, the government, in April this year, had removed the 4% special additional duty (SAD) imposed on the import of components used for manufacturing of LED lamps, fixture and MCPCB for LED lights. The panel also recommended that the government should ensure the setting up of adequate and reliable testing facilities for LED lights across the country. The demand of energy-efficient LED lights has been increasing in India in the wake of the government’s focus on saving power. According to estimates, the turnover of Indian lighting industry is expected to be around Rs.35,000 crore by 2020, of which 60% will come from LED market.
August 12, 2015 | 4:01pm IST.
to success.