India has excluded appliances and consumers electronic products from free trade agreement (FTA)
Published Date | 2018 November 19
India has signed free trade agreement with Singapore, Thailand, and ASEAN under which appliances and consumers electronics product were excludedIndia: Appliances and consumer electronic products are excluded from FTA with a view to boost Indian domestic manufacturing and promote exports. It has asked the government to not cut or eliminate import duties in this sector under the proposed mega trade deal Regional Comprehensive Economic Partnership (RCEP) Under an FTA, each country is required to gradually reduce and eliminate tariff rates on the other country's goods, which include electronic goods. According to Consumer Electronics and Appliances Manufacturers Association (CEAMA), the ACE sector has witnessed a sluggish growth in the first half of the on-going fiscal on account of devaluation of Indian rupee and other factors, thus this agreement will stimulate market growth and strengthen the Indian economy. FTAs signed by India are with production driven economies resulting in finished products from these countries being imported into India at a cost lower than what it would have cost to manufacture the same products in India. This factor combined with the fact that in most cases, components of the finished products are subject to import duties at rates higher than the duties applicable on finished products, the FTA has contributed to the decline of the manufacturing of products in India. According to BlueWeave Consulting, the consumer electronics and home appliances market in India will witness significant growth owing to the on-going trend of adopting smart and technologically advanced home appliances. Convenience is a key factor driving the consumers to buy home electronics products; further advance features of electronic devices surge the need among buyers for making a purchase decision. Such factors have resulted in the development of technologically smart electronics products that cut manual labor. In addition, emerging conception of smart homes has augmented the evolution of smart home appliances, which is monitored remotely when connected to the smartphones of consumers. According to upcoming report by BlueWeave Consulting on “Global Consumer Electronics And Home Appliances Market, By Products, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2025”, With the rise of innovation and digitalization, particularly in the residential sector, countries across the globe are actively looking for solutions to balance economic, technological and social development. Further, increase in urban population has emerged the requirement for consumer’s electronics and home appliances. Communities are turning to innovative information communication technologies (ICT) to re-imagine the way in which people of the residents live, work or play. Therefore, the consumer’s electronics and home appliances market will witness high growth over the forecast period.