Duty exemption to boost microwave manufacturing in India

Industry players said microwave oven prices may see only a minor impact after customs duty exemption in the FY27 budget. The move is expected to boost domestic manufacturing, improve component sourcing and strengthen India’s consumer electronics sector

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, industry players said.

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 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 ovens globally competitive.

“Furthermore, localisation will happen,” Haier India President N S Satish told PTI.

“This will help manufacturers in component sourcing,” he said.

When asked whether it will have any downward impact on prices, Satish said, “Not much. It will have a minuscule impact on pricing.”

According to a report from Marketsandata, a market intelligence and business consulting company, the 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, appreciated the move and said the government has considered its request to waive BCD on key imported components used exclusively for microwave ovens.

“This is a welcome move that will strongly benefit LG Electronics India and the 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.

He said the initiative will further strengthen the domestic consumer electronics sector and also improve viability for the microwave export business.

According to some reports, India primarily sources components for its microwave ovens from China, with additional supplies from countries like South Korea, Malaysia and Japan.

Terming the budget proposal a “timely move”, Panasonic India said it will significantly boost domestic value addition, improve cost efficiencies and strengthen local manufacturing capabilities across the consumer durables sector.

“For consumers, these measures can translate into improved affordability and wider access to advanced appliance technologies,” said Panasonic India’s Chief Business Officer Vijay Wadhawan.

According to Kamal Nandi, Business Head and EVP, Appliances Business of Godrej Enterprises Group, “It can encourage manufacturing in India in the long run. Currently, all microwave ovens are imported.”

Consultancy firm EY, in its Budget Impact analysis report, said that decisions such as duty reduction on microwave oven components “represent clear wins for manufacturing competitiveness and export agility”.

Finance Minister Nirmala Sitharaman, while presenting the Union Budget for FY 2026-27 on Sunday, announced BCD exemptions on microwave components.

“To deepen value addition in the consumer electronics sector, I propose to exempt basic customs duty on specified parts used in the manufacture of microwave ovens,” she said in her speech in Parliament.

Brands including Samsung, LG Electronics, IFB, Panasonic, Whirlpool, Godrej Appliances, Haier and Bajaj Electricals compete in the microwave ovens segment.