VFM hifi equipment post India-US FTA

[panditji]

Hoping that India-USA finalize a FTA in the next 9 months.. Wanted to know which all fantastic hifi products can we look forward to once the deal is finalized.
Cheaper Magnepans is something I am looking forward to as I have long wanted the 1.7is...

 

[arunlouie]

Schiit, Bose, Klipsch (few high end made in US), Mcintosh.

But you never know Thai will come up with new way of taxing post import. Walnut color speaker & Silver color Amp attracts more GST ( can happen)

 

[panditji]

McIntosh is another brand which may become cheaper but it will still not be VFM..

 

[sidvee]

I wouldn't count on it Panditji, I have never seen audio equipment become cheaper in India in the past 12 years that I have been here, regardless of FTA's or any other economic activity. Prices of audio equipment, like the USD only seem to climb higher and higher.
Regardless, looking forward to being able to buy Jack Daniel's at a more reasonable price now (rather than the 3800/bottle in Hyd), hopefully being that duty on bourbons has been reduced by 50%, but I am not really counting on it, Govt. will find a way - "what one hand giveth, the other hand taketh away".
Cheers,
Sid

 

[dandysandy]

Once they get the taste for selling products for higher price, I don't think any seller would want to reduce the costs.

Have you observed any product that had its cost reduced after the covid period. Covid bought the great demand for home theatres and the costs have only gone up and now no company wants to sell them around the old pricing. Although, we can only hope for the best.

 

[Analogous]

We can dream of it.
The current trends seem to indicate higher tariffs, taxes and protectionism; all opposite of FTAs. Unless I am misreading the situation.
Tesla cars and Starlink might make entries though

Will Be Very Unfair: US Prez Trumps Explosive Remarks As Musk Signals Teslas Entry In India

A few days back, electric carmaker Tesla opened recruitment for various roles in India, including business operations analyst and customer support specialist.

zeenews.india.com

 

[Passive_audio_enthusiast]

Hoping that India-USA finalize a FTA in the next 9 months.. Wanted to know which all fantastic hifi products can we look forward to once the deal is finalized.
Cheaper Magnepans is something I am looking forward to as I have long wanted the 1.7is...

Is this only applicable for things that are manufactured in US and then imported to India, otherwise if it was possible to get the Revels at prices similiar to US prices, that would have been fantastic.

 

[Passive_audio_enthusiast]

Once they get the taste for selling products for higher price, I don't think any seller would want to reduce the costs.

Have you observed any product that had its cost reduced after the covid period. Covid bought the great demand for home theatres and the costs have only gone up and now no company wants to sell them around the old pricing. Although, we can only hope for the best.

Actually its not just demand that drove the prices up, its also inflation.

 

[panditji]

Is this only applicable for things that are manufactured in US and then imported to India, otherwise if it was possible to get the Revels at prices similiar to US prices, that would have been fantastic.

The FTA if and when it happens will be applicable on products made in the USA ... So products need to be attested by the manufacturers that they were made in the USA and therefore zero/lesser duties will be applicable...

Which is why Magnepans, McIntosh and such could have zero or very low duties .. Since Trump is threatening reciprocal duties, I think our government will reduce the import duties on electronics to zero so that we can export the electronics made in India to the USA.. There is hardly any consumer electronics which are made in the USA and sold in India apart from a few high end products and medical equipment/devices... So it would be in the interest of India to make duties zero so that the Samsungs, LGs , Apples can make in India and export it to the USA .. In the bargain, we could import american electronics with zero duties as well...

Fingers crossed....

 

[shibashis]

Fingers crossed....

I have tied enough of my fingers into knots of all sorts, hoping and crossing over the years, that dream is yet to come to pass. I will still cross a couple more if you say!

 

[Nitin K]

In the bargain, we could import american electronics with zero duties as well...

Fingers crossed....

Panditji, we always keep our fingers crossed for our audio aspirations, but some how it gets double crossed with high taxes and duties here.

 

[insane79]

McIntosh is another brand which may become cheaper but it will still not be VFM..

The 50% additional tariff will make the price higher now? who knows.

Cheers.

 

[oracle1974]

With GST reduced to 18% from 28%, prices will be cheaper if import tariffs remain the same.

 

[insane79]

With GST reduced to 18% from 28%, prices will be cheaper if import tariffs remain the same.

Doubt it, i think it was always 18% for audio products.

 

[oracle1974]

Doubt it, i think it was always 18% for audio products.

For imports, the countervailing duty applied was 28%; now the CVD will be 18%.

 

[sidvee]

The main issue for reduction of GST etc. is passing on the benefits to the customer. In case of domestic goods, the Govt. is monitoring that this happens. I am pretty sure this will not be done for imports (especially a niche like Audio eqpt.), and the savings will be pocketed by the importer/distributor who, will in turn raise prices stating the weakness of the INR.
Cheers,
Sid

 

[insane79]

The main issue for reduction of GST etc. is passing on the benefits to the customer. In case of domestic goods, the Govt. is monitoring that this happens. I am pretty sure this will not be done for imports (especially a niche like Audio eqpt.), and the savings will be pocketed by the importer/distributor who, will in turn raise prices stating the weakness of the INR.
Cheers,
Sid

This is so True, they will increase prices blaming the weak INR which is crashing..

 

[COOLDUDE7808]

Since many of these American products are manufactured in China , will FTA between America / India result in less duty or What is applicable between China - India will prevail ? . For example India/UK signed some FTA but I have not seen prices of Made in UK stuff like say Rega or some speaker brands coming down .

Recently I have seen Seller ads in E-Bay for Advance Paris products shipped from Germany to US mentioning zero tariffs (thanks to Trump) and hence less prices for American consumers

 

[sidvee]

IMO no prices of audio equipment are going to come down in India, rather they will increase, in-line with the USD value. This is regardless of FTA's. What one needs to understand is that ultimately prices are controlled by the importer/distributor. If the distributor is a professional i.e: one who is into the hi/fi - home-theater market and dealing in large brands, and has a desire to run a proper/sustainable business, then he may price his products somewhat in-line with the international market (of-course he will never reduce prices). If the distributor is a trader, small time operator etc, then he will price the products according to his whim and fancy 2x - 3x - 4x. Hence we see so many brands changing distributors as they cannot create any volume and traction with crazy pricing.
This is what I have seen in the past decade or so of buying equipment, and I am sure nothing is going to change. Price reduction is a mirage/fantasy that will never be fulfilled - for imported equipment (unless the INR appreciates like crazy which will never happen in our lifetimes).
Cheers,
Sid

 

[Kapeel]

If there’s a free trade agreement and audio-related items are considered for zero tariffs, why can’t people just import from US-based online stores? Why do we need a distributor or importer? Isn’t that what we do now, just that there won’t be any hassle with customs?