Duty cut to boost local manufacturing of microwave ovens

New Delhi: Prices of microwave ovens will have a minor impact after the proposed exemption of customs duty in the FY27 budget, but the move will encourage domestic manufacturing of the product, said industry players.

Currently, the microwave oven market in India is estimated to be around 2.2 million units, and is projected to grow with a CAGR of over 8 per cent for the next five years, led by factors such as growing urbanisation and expansion of nuclear families.

A handful of companies, such as LG Electronics and Haier, manufacture or assemble some of the models, while others import components from China, Taiwan, Thailand, and other markets.

The exemption of basic customs duty on these imports will boost component sourcing, strengthen the domestic manufacturing ecosystem and make India-made microwave oven globally competitive. "Furthermore, localisation will happen," Haier India President N S Satish said. "This will help the manufacturers in component sourcing," he said.

When asked whether it will have any downward impact on the price, Satish said, "not much. It will have miniscule impact on the pricing."

According to a report from Marketsandata, a market intelligence and business consulting company, India microwave oven market is projected to witness a CAGR of 8.52 per cent during FY2026-FY2033.

LG Electronics India, one of the leaders in the segment, has appreciated the move and said the government has considered our request to waive off BCD on key imported components used exclusively for microwave ovens.

"This is a welcome move that will strongly benefit LG Electronics India and Indian microwave manufacturing industry by boosting local manufacturing and further building on the government's Make in India scheme," said LG Electronics India Factory Head- Greater Noida, Gaganjeet Singh.