March 17, 2015: After Sony and Samsung announced the plan to boost local production, many other companies have also joined the line for ‘Make in India’. The recent additions in the list of companies are Panasonic and Hitachi, which are keen to expand their local manufacturing bases in an attempt to boost supply in the local market but also export to other countries. However, the major hindrance in the plan of action is the lack of motivating environment. This acts as an obstacle for firms to make solid commitments.
Business Standard reported that Panasonic is already in the process of exporting air conditioners, washing machines and kitchen appliances to many South-East nations along with Africa and Middle East. The industry experts are of belief that this list can grow only in case the environment is conducive in our country.
As report by BS, Kamal Nandi, business head and executive vice-president, Godrej Appliances, says, “The impact of customs duty reduction on magnetrons (used in microwave ovens) up to 1 kilowatt is not more than Rs 50-60 per unit. This is because customs duty on this component was 5 per cent, which has been brought down to zero. While the move is welcome, it is unlikely to compel manufacturers to shift assembly lines here. That will take time and after a series of measures, which involves duty cuts on other components that go into a microwave.”
The recent budget mentioned the steps taken by the government in this direction by rationalising customs duty on certain key components, though a lot more is still needed to be done.
