A recent cut in the Goods and Services Tax (GST) on televisions has caused a significant change in the Indian consumer electronics sector, moving many customers into larger screen TVs and boosting growth in a segment that had suffered in prior quarters. A GST drop that went into effect on September 22, 2025, reduced the tax on televisions larger than 32 inches from 28 percent to 18 percent, bringing them in line with smaller screens and making larger TVs substantially less expensive. According to analysts, this regulatory move has acted as a driver for “premiumisation” in India’s television market, significantly influencing purchasing tendencies across the country.
Industry tracker Counterpoint Research said demand for televisions sized 43 inches and above has jumped following the GST cut, with large-screen models now making up nearly two-thirds of total TV sales in the previous quarter, compared with about half of overall sales during the January–March 2025 period.
GST Cut Drives Premiumisation and Price Cuts:
The GST drop on large-screen televisions was part of a larger tax simplification and rate rationalisation initiative launched by the GST Council in September 2025, which realigned slabs and reduced the GST burden on several consumer durables including as TVs, air conditioners, and dishwashers. Televisions with displays greater than 32 inches had their tax rate reduced from 28% to 18%, resulting in an effective price decrease of approximately 8-9% for consumers.
For example, industry data shows the reduction translated into a ₹2,000-3,000 price drop for 43-inch TVs, around ₹4,000-5,000 for 55-inch models, and ₹7,000-10,000 for 65-inch sets. This tax relief has not only made larger screens more affordable for middle-class households but also helped bridge the price gap between 32-inch entry-level models and premium larger units, prompting many consumers to “trade up” their purchases.
Market analysts point out that before the GST cut, consumers tended to favour smaller screens in price-conscious segments, particularly where 32-inch models once dominated. However, the tax adjustment has shifted consumer calculus in favour of larger screens, which offer more immersive viewing experiences for sports, movies and streaming content.
Retailers and brands have responded quickly to the change. Pankaj Rana, Chief Executive at Hisense India, said his company has scaled back focus on sub-43-inch models as their contribution to total sales shrank, with larger screens now driving demand. He noted that the smaller price differential following the GST change makes bigger screens a more compelling choice for most households.
Reviving a Flat TV Market and Boosting 4K Adoption:
Before the GST revision, India’s TV market had been largely flat, with consumer demand subdued due to price pressures and macroeconomic headwinds. The premiumisation trend initiated by lower taxes has injected new energy into the segment, helping revive overall sales after several quarters of sluggish growth.
Major retailers are reporting robust sales performance in large-screen categories. Reliance Retail, which operates India’s biggest organised electronics retail network, said televisions contributed strongly to record consumer sales in the latest quarter. Similarly, Great Eastern Retail reported that the share of large-screen TV sales climbed by nearly 20 percent, outpacing other categories as shoppers responded to price cuts and festive offers.
Analysts also say the GST cut has accelerated the adoption of 4K resolution televisions, particularly in the 55-inch and above segment, where consumers increasingly expect higher picture quality. With prices for larger screens falling and more 4K content available on streaming platforms, buyers are more willing to invest in premium models. This shift is not only elevating average selling prices but also pushing brands to expand their portfolio of high-end offerings. However, there are potential headwinds. Rising memory chip prices, which affect the cost of electronics components, could erode some of the GST-led savings if manufacturers adjust retail pricing to offset increased input costs. Pulkit Baid, Director at Great Eastern Retail, warned that persistent supply chain pressures could mitigate the price benefits consumers currently enjoy.
Sustaining Growth Beyond the GST Cut:
Larger screen TVs are certainly becoming more popular among Indians as a result of the GST drop, but maintaining this rise will depend on a number of variables. Maintaining momentum will require solid supply chains, ongoing affordability, and product breakthroughs like QLED, OLED, and smart TV features. To turn attention into purchases, brands might also need to inform consumers about the advantages of bigger screens and modern technologies.
In addition, as the popularity of the once-dominant 32-inch category drops, the industry is probably going to shift its attention and resources to larger formats, such as OTT streaming and high-definition broadcasts, that better suit modern patterns of content consumption. India’s television business looks set for a period of sustained change marked by larger screens, more features, and more consumer demand, thanks to the GST drop that has made these high-end screens more affordable.
