Appliance Manufacturers to Drive ‘Make in India’ Following High Import Duties

- Advertisement -

Appliances manufacturers have turned to India to locally produce their goods following high import duties, thereby pushing ‘Make in India’

The appliances industry is set to drive the Make in India initiative following the hike in import duties on white goods. The manufacturers have planned over Rs. 6,500 crores investments on making their products in India within the next two years.

- Advertisement -

The government had imposed a hike in the import duties on white goods such as refrigerators, washing machines, air conditioners and their components following the falling rupee value against the US dollar. The Make in India move was to balance India’s current account deficit with its trade partners by cutting down on imports and increasing domestic production which would also generate employment. This had prompted the local manufacturing plans by major white goods manufacturers to make huge investments in setting up factories and produce locally.

Import duty

In September, the government of India had increased import duty on white goods to 20 per cent. It also hiked the 7.5 per cent duty to 10 per cent on imports of compressors for ACs and refrigerators. Overall, importing appliances carried an overall 10 per cent import duty.

In December, import duties on smartphones and television sets were increased which led to a massive wave of investments in setting up local manufacturing units.

The white goods producers have invested heavily in local manufacturing of all their products except for premium models and components such as heat exchange coils and compressors. Industry analysts have predicted a further hike in import duties to strengthen the ‘Make in India’ initiative.

Major investments in manufacturing units

Appliances giants across the world have lined up investments to set up manufacturing and integration units in India. This year has drawn investments from companies like Hitachi, Haier, Panasonic, Bosch and many more.

While Panasonic is in talks with suppliers for components manufacturing, Bosch has recently announced about investing about Rs. 800 crores on a manufacturing facility for refrigerators. The company also manufactures its washing machines locally. Midea group will be manufacturing compressors with an investment worth Rs. 1,350 crores.

Haier is investing Rs. 3,000 crores in its upcoming plant in Noida that will make components and its premium ranges. The compressor manufacturing segment has also drawn Hitachi to invest in its upcoming plant in Gujarat. TCL is set to kickstart production of TVs and other appliances and components from Tirupati in 2019.

ET has quoted Kamal Nandi, Business head, Godrej Appliances and president, Consumer Electronics and Appliances Manufacturers Association (CEAMA) saying that major brands in countries with which India has inked free trade agreements (FTAs) were considering manufacturing in India as it may be cheaper due to lower labour costs and the high freight costs from overseas going down.

- Advertisement -

Most Popular Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

NVIDIA Record $26B Q1 Revenue, Announces Stock Split And Dividend Hike

0
The quarterly cash dividend has been raised by 150%, resulting in $0.01 per share on a post-split basis. NVIDIA reported first-quarter revenue for the period...

“AIC-T-Hub Aims To Grow Startups So More Indian Unicorns Can Contribute To The GDP”

0
T-Hub has collaborated with Atal Incubation Centre (AIC), initiated by the Atal Innovation Mission to incubate semiconductor startups, fostering innovation for India’s advancement in...

Pros And Cons: Boult’s Varun Gupta On Contract Electronics Manufacturing

0
While contract electronics manufacturing is not a new concept in India, it has lately picked up a pace never seen before. But what has...

Buzz

NVIDIA Record $26B Q1 Revenue, Announces Stock Split And Dividend Hike

0
The quarterly cash dividend has been raised by 150%, resulting in $0.01 per share on a post-split basis. NVIDIA reported first-quarter revenue for the period...

ASUS IoT And BRESSNER Technology Launch CTOS

0
The collaborative approach seamlessly integrates advanced features across CTOS solutions, fostering synergy. ASUS IoT has recently unveiled a strategic collaboration with BRESSNER Technology, aiming to...

Samsung Appoints Veteran Amid AI Chip Challenges

0
This shake-up, effective immediately, sees Young Hyun Jun transitioning from his role in future business planning to tackle the booming demand for high-end AI...

Important Sectors

Samsung Appoints Veteran Amid AI Chip Challenges

0
This shake-up, effective immediately, sees Young Hyun Jun transitioning from his role in future business planning to tackle the booming demand for high-end AI...

Imec-Led European Labs To Get $2.7B From Chips Act Funding

0
Europe's chip revolution gains momentum with a €2.5 billion investment in cutting-edge pilot production line for sub-2nm technologies, aiming to elevate domestic production and...

Progress And Challenges In Autonomous Commuting

0
Despite over a decade of technological advancements and testing in cities like Phoenix and San Francisco, robotaxis still faces significant hurdles.  Companies like Waymo, Cruise,...

New EV Policy Offers Incentives For Plant And Machinery Investments

0
Investments in creating physical infrastructure such as plants, machinery, charging stations, and other assets developed or acquired by companies will qualify for incentives under...

Dr Yashodhan Gokhale Joins JSW Energy As VP

0
Interestingly, he had started his professional innings in the role of a Research Chemist with Sudarshan Chemical Industries Dr Yashodhan Pramod Gokhale has joined JSW...

Manufacturing

Imec-Led European Labs To Get $2.7B From Chips Act Funding

0
Europe's chip revolution gains momentum with a €2.5 billion investment in cutting-edge pilot production line for sub-2nm technologies, aiming to elevate domestic production and...

EVR Motors Discusses Tech Sharing With Indian OEMs

0
The Israel-based EVR Motors designs Radial Flux Permanent Magnet (RFPM) motors and licenses this technology for manufacturing by OEMs and component makers. EVR Motors, an...

Automotive Electronics Industry Growth Prospects And Strategies

0
From electric vehicles (EVs) to autonomous vehicles, discover the challenges, key players, and market segments driving a $136 billion industry revolutionising vehicles and the...
Siemens and CSA

Siemens To Sell Innomotics To KPS For $3.8B

0
Siemens chief financial officer Ralf Thomas expressed his pleasure at the significant progress made in optimizing their portfolio through the sale of Innomotics to...
Siemens and CSA

Siemens Limited Announces ₹1000 Crore Capex

0
In a statement, Siemens announced that it is expanding its factory operations in Goa to address the rapidly growing demand for essential industry components. Siemens...