The Union Budget for the year 2021 focuses on rejuvenating a sustainable economy. However, the decision taken on increasing tariffs on imported goods for manufacturing LED lighting products will, in turn, increase the prices of locally manufactured goods, whereas, the tariff on finished goods remained consistent.
Sumit Joshi, President, ELCOMA and Vice Chairman and Managing Director, Signify Innovations India Limited., said: “The Union budget this year is dedicated to resetting and rebuilding a sustainable economy with an emphasis on promoting local manufacturing. The increased focus on infrastructure and renewable energy, especially solar energy, is a welcome move for our sector. However, the government’s decision to increase the tariff on inputs and parts used for manufacturing LED lighting products will result in a price increase for locally manufactured lighting products in the short term. As currently almost all electronic components are imported from abroad due to a lack of a local component ecosystem in India. This move might support the industry in the long term, once the component manufacturing ecosystem in India becomes more established. Even as prices of locally manufactured goods will go up, the tariffs on finished goods has remained unchanged. As ELCOMA, we will go back to the government to address this urgently by correspondingly increasing the tariff on finished goods as well for this category, to support local manufacturers in the true spirit of India becoming Aatmanirbhar Bharat.”