PHDCCI Calls for Stronger Domestic Manufacturing Ecosystem In Consumer Durables And Electronics Ahead Of Union Budget 2027–28

New Delhi, November 10, 2026: The PHD Chamber of Commerce and Industry (PHDCCI) has recommended a series of targeted customs duty and tariff classification measures for the consumer durables and electronics sectors in its Pre-Union Budget 2027–28 proposals, with a focus on strengthening domestic manufacturing, promoting component localisation and enhancing India's competitiveness in global value chains.
India's consumer durables production registered growth of approximately 3.1% in FY2025–26, compared to 8.4% in FY2024–25, indicating a moderation in production growth. Meanwhile, the electronics sector has demonstrated significant expansion, with production increasing nearly six-fold from ₹1.9 lakh crore in FY2014–15 to ₹11.3 lakh crore in FY2024–25. Electronics exports have also increased more than eight-fold, from ₹38,000 crore to ₹3.26 lakh crore during the same period.
Against this backdrop, we have proposed increasing the Basic Customs Duty (BCD) to 20% on imports of finished Completely Built Units (CBUs) of washing machines, dishwashers, vacuum cleaners and robotic vacuum cleaners. The recommendation aims to provide greater support to domestic assembly operations, encourage localisation of components and strengthen the competitiveness of Indian manufacturers.
We have also called for the creation of a dedicated tariff classification under HSN 8528 59 10 for Interactive Flat Panel Displays (IFPDs), accompanied by a clearly defined customs duty structure for assembled units and lower rates for parts. It has further recommended uniform instructions across customs ports to address classification-related ambiguities and provide greater certainty to businesses.
Interactive Flat Panel Displays have become increasingly important in digital education, corporate communication and institutional applications. A predictable classification and tariff framework would help manufacturers and importers plan their sourcing and investment decisions with greater certainty.
The consumer durables manufacturing has important backward linkages with the metals, plastics, chemicals, electrical equipment, electronics and engineering goods industries. Robotic vacuum cleaners, in particular, integrate sensors, electronic controls and automated navigation technologies, creating opportunities for deeper domestic value addition.
"India's consumer durables and electronics industries have made significant progress in expanding domestic manufacturing capabilities and strengthening export performance. The next phase of growth must focus on deeper localisation, development of component ecosystems and greater value addition within the country. Rationalising customs duties on finished products, alongside addressing classification-related ambiguities, will help create a predictable policy environment, encourage domestic investment and enhance India's competitiveness in global electronics and consumer appliance value chains said Anil Gupta, President, PHDCCI."