New norms may make electronics costlier

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whitestar_999

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New norms may make electronics costlier - The Times of India
NEW DELHI: Prices of laptops, notebooks, tablets and televisions may go up, while the latest global models may miss a date with India as new regulations by the Bureau of Indian Standards (BIS) stipulate stricter norms on makers of gadgets and other electronic items. The categories impacted by the new norms include printers, scanners, wireless keyboards, set-top boxes and microwave ovens.

The BIS norms, which initially started with ensuring a certification process for new products, have now been tightened. The new regulations require companies to either screen-print, emboss or engrave the certification and compliances on the product and on the packaging material. This will replace the current practice where companies mention the certification and compliance through stickers pasted on the products.

Companies complain that the process of embossing or engraving is "not practical, and not followed anywhere in the world". They say that it will only lead to delays in new product launches, and will also mean increased prices if separate lines are created to fulfill the BIS norms.

"This is a serious matter. The new norms, while being good in their intention, are highly impractical to follow," says Alok Bharadwaj, VP at Canon India. "The industry should have been consulted before the government decided on any such measure."

The move has already seen companies like Sony, Panasonic, Videocon and Lenovo take up the matter with the government, while industry body MAIT has also criticized the measure.

"Most of the IT companies are changing their models so fast that it has become a common practice to use stickers rather than have them screen-printed, embossed or engraved. Products are manufactured in multiple factories and production cycles are constantly shifting. Preparing tooling for 'embossed or engraved' in a multiple-factory setting would be time consuming and extend timelines drastically," Anwar Shirpurwala, director of MAIT, said.

The new labelling requirement mandates that the declaration be displayed at a "prominent location" and the font size of letters of the statement shall be 12, or 1/4th of the size of the brand name, whichever is lower. The minimum font size should be at least six.

Abhijit Kotinis, chief technology officer for Videocon, said the measure is very difficult to implement. "We have vehemently opposed the move. Metal plating or engraving on products like LED TVs and tablets is very difficult," he said. "We had proposed to install a tamper-proof stickers or plastic labels."

Amar Babu, president of MAIT and India MD of Lenovo, said global supply chains do not have facilities for the proposed labelling norms. "We have told the government that this is impractical and not followed anywhere worldwide."

The measure will lead to scarcity of products in the market. "Also, we will not be able to launch the latest products along with their global debut," he said. Companies said product prices will move up if the government does not relax the norms. "It will certainly impact prices," Babu said. Canon's Bharadwaj also said prices may have to move up. "You can't absorb them completely. Any additional cost will finally be passed on to the customer."
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if anyone is thinking about getting a laptop,tablet or tv then better hurry.
 
SaiyanGoku

SaiyanGoku

kamehameha!!
People curse the companies, while actually Indian government is to blame. :sad:

stupid import taxes, duties, VAT, customs, octoroi and now this. :mad:
 
adityak469

adityak469

Training To Beat Goku
SaiyanGoku said:
People curse the companies, while actually Indian government is to blame. :sad:

stupid import taxes, duties, VAT, customs, octoroi and now this. :mad:
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those import taxes are there for promoting Indian goods. but our great government isn't doing anything for local and national producers. they are supposed to discourage trade to let the domestic producers flourish. but they just eat the money that was supposed to be spent for upgrading hardwares and subsidizing goods for the producer
 
SaiyanGoku

SaiyanGoku

kamehameha!!
AFAIK, there are no local/national companies which have better quality electronic products (phone, laptops, etc) compared to the international OEM's at the same price.

there is no point in discouraging this international trade.

Import taxes/duties should be charged on imported things which can be produced locally too like food items, clothes, etc.
 
adityak469

adityak469

Training To Beat Goku
SaiyanGoku said:
AFAIK, there are no local/national companies which have better quality electronic products (phone, laptops, etc) compared to the international OEM's at the same price.

there is no point in discouraging this international trade.

Import taxes/duties should be charged on imported things which can be produced locally too like food items, clothes, etc.
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yes our domestic products are not at par with the international market. I stated that the govt is supposed to help the local producers upgrade their machinery and subsidize raw material to help them flourish. These taxes are there for the long run(in a good govt) to make them at par and increase exports and reduce imports.
I dont think that even 50% of indian population has a computer or a smartphone, these are not even basic necessity for living. But food, clothing are basic need to live. Most of the indian population is poor and hence unable to afford costly food and clothes, so taxes on food, clothes are illogical and hence bad move for the people.

PS mind any grammar mistakes, m half asleep right now.
 
$hadow

$hadow

Geek in making
Now it's time to wait and watch how many products line up is going to get a heavy hit from this.
 
adityak469

adityak469

Training To Beat Goku
[MENTION=2744]nikhil[/MENTION] do you even know what you are saying? If there are no taxes, then the free flow of goods from other countries would leave the indian market in turmoil and that means india will be more poor than ever. I guess you buy a book that costs Rs.150 and is made in India rather than a book that costs Rs1000, imported from outside. This helps indian producers.
 
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whitestar_999

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[MENTION=271931]adityak469[/MENTION],you are completely misinformed about the importance of imports.why do you think import exists if they are so evil?no country on this earth can efficiently produce all the products it need.let's take your book example.why would anyone buy a Rs.1000 book if he can buy same book made in India for Rs.150?because there is no such book.you want people to buy Indian electronics product at the same quality as foreign products then you would have to first invest thousands of crores in manufacturing sector followed by thousands of crores investment in infrastructure followed by radical changes in Indian labor laws which only promotes inefficiency & unionism.this will lead to so high input costs that it would be a financial suicide to sell products at the same price as that of foreign products.

you know who tried to follow your idea of making everything in India & banning/restricting all foreign imports.all indian govt. till 1991.you know what that resulted in.India with a begging bowl at the doors of IMF.
 
adityak469

adityak469

Training To Beat Goku
whitestar_999 said:
[MENTION=271931]adityak469[/MENTION],you are completely misinformed about the importance of imports.why do you think import exists if they are so evil?no country on this earth can efficiently produce all the products it need.let's take your book example.why would anyone buy a Rs.1000 book if he can buy same book made in India for Rs.150?because there is no such book.you want people to buy Indian electronics product at the same quality as foreign products then you would have to first invest thousands of crores in manufacturing sector followed by thousands of crores investment in infrastructure followed by radical changes in Indian labor laws which only promotes inefficiency & unionism.this will lead to so high input costs that it would be a financial suicide to sell products at the same price as that of foreign products.

you know who tried to follow your idea of making everything in India & banning/restricting all foreign imports.all indian govt. till 1991.you know what that resulted in.India with a begging bowl at the doors of IMF.
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maybe i am wring. I am just a student who passed class 10. I am just stating what i read. That book, can't exist, i used a too much cost difference. But you can get a book for 100 from the Indian market, why would you buy it at 145?[the taxes on electronics mentioned here are almost 45%]
what happened with indian products when trade was made free? Chinese products flourished while indian markets almost died. You will see almost everyone buying chinese products because they are cheap. You won't even find indian products in most of the shops.

You say it'll require thousands of crores to improve the quality of products. I'm from a small state(jharkhand) and the fu*#@!ng politics are found with black money in amounts of what you mentioned. Why the heck can't we spend money on something good if we can just see politicians eat all our money? Its not the like its being used for the country?
About those labour laws, the working conditions are almost violation of fundamental rights. The politicians promise the poor people, that the will make laws for their benefit, but what the do? Leave making laws, they make previously made laws more flexible.

Forgive me if i went a little off topic. :)

- - - Updated - - -

and i am on mobile, so mind the wring spelling :)
 
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whitestar_999

Super Moderator
Staff member
you just passed 10th so i won't expect you to understand it now but economics is much more complex & harder to understand than what it seems by looking at politicians tv debates on fdi & what not.you mentioned chinese imports but have you read about silence of indian manufacturers when Rahul Gandhi asked a delegation of indian businessmen why they can't make indian products to fight chinese imports in such categories as toys,small electronics goods etc.the reason indian products died is because they can't compete honestly.i said honestly because you can increase import duties to 100% to make chines imports cost much more but then it would give rise to smuggling.Indian govt tried that once with gold in 1960/1970s which only gave rise to mumbai underworld & eventually dawood ibrahim.moral of the story is only by honestly competing a product is allowed to rise/dominate & if one can't do that then simply accept that & move on.
 
$hadow

$hadow

Geek in making
But the policy of LPG has helped India in a way or another you got to say that [MENTION=126812]whitestar_999[/MENTION]
 
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whitestar_999

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for average/typical member here LPG=liquified petroleum gas.
for those who know in economics/public administration LPG=liberalisation,privatisation,globalisation.
 
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