India Cuts GST on Consumer Electronics to Boost Demand
- brg_news_room
- Sep 8
- 1 min read
India: India cuts GST rate on air conditioners, dishwashers, and televisions larger than 32 inches from 28 percent to 18 percent, effective 22 September. According to the Ministry of Electronics and Information Technology, the move is expected to expand demand, increase domestic production, and create stronger linkages for component suppliers such as those producing compressors, displays, and semiconductors. The ministry added that micro, small and medium enterprises in plastics, wiring, cooling systems, LED panels, and assembly services would also benefit from the decision.
Industry representatives stated that while prices are set to fall by around 10 percent, customers and smaller retailers are currently delaying purchases until the new rates take effect. Executives expect demand to rise significantly after 22 September, with the industry now projecting annual growth of up to 20 percent compared to earlier estimates of 10–15 percent. Manufacturers also anticipate that consumers will be encouraged to upgrade to higher-rated appliances, providing further momentum to the sector.
Source: Business Standard
