GST Slash Fuels Big-Screen TV Boom, Dominating Indian Market

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AuthorAnanya Iyer|Published at:
GST Slash Fuels Big-Screen TV Boom, Dominating Indian Market
Overview

India's television market is rapidly segmenting towards larger screens following a GST reduction on sets 43-inch and above. This policy shift, implemented September 22, 2025, has propelled 43-inch-plus televisions to account for two-thirds of total sales, up from 50% previously. Concurrently, the once-dominant 32-inch segment is experiencing declining shipments, as consumers embrace premiumization driven by more accessible pricing for larger displays. This trend has revitalized the broader TV market, which had struggled for growth.

GST Cut Fuels Premiumisation

The Indian television market is witnessing a dramatic shift toward larger screen sizes, driven by a strategic reduction in Goods and Services Tax (GST) effective September 22, 2025. This fiscal adjustment, which lowered GST on televisions exceeding 32 inches from 28% to 18%, has effectively cut prices by 8-9%. The move has catapulted 43-inch and larger television sets to capture two-thirds of the market share in the last quarter, a significant jump from approximately half in the preceding quarter.

Consumer Behaviour Shifts

This policy change has acted as a catalyst for premiumisation, making larger, higher-resolution displays more attainable for a broader consumer base, particularly in tier II and tier III cities. Anshika Jain, senior analyst at Counterpoint Research, noted the tax relief "lowered effective prices, making premium screen sizes more accessible." Consequently, the entry-level 32-inch segment, India's largest TV segment until recently, has seen its shipments decline by 8-10% year-on-year. Industry estimates suggest that large-screen models, conversely, have experienced sales growth of 20-25% since the GST adjustment.

Industry Pivots to Large Screens

Brands are recalibrating production and sales strategies to align with this evolving consumer preference. Hisense India CEO Pankaj Rana stated the company will reduce focus on 32-inch models, whose industry contribution is falling from 45% to around 30%. The reduced price gap between 32-inch and 43-inch sets, now only a few thousand rupees, further incentivizes consumers towards the superior viewing experience offered by larger screens for content like sports and movies. This demand surge has revitalized a market that saw flat sales growth in 2024. Retailers like Reliance Retail reported televisions driving record consumer sales last quarter, with Great Eastern Retail seeing an almost 20% climb in large screen TV contributions.

4K Adoption and Emerging Risks

The GST reduction has also accelerated the adoption of 4K televisions across various price points. For screens 55 inches and above, 4K is now becoming the standard, fueled by decreasing price gaps and increased availability of 4K content on OTT platforms. However, the industry faces a potential headwind: rising global memory prices could increase manufacturing costs for TVs, potentially offsetting the GST-related price benefits. Pulkit Baid of Great Eastern Retail cautioned that continued shortages and price hikes in memory chips might force manufacturers to raise TV prices again.

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