GST cut pushes Indians toward bigger screen TVs
What's the story
The recent reduction in Goods and Services Tax (GST) on large-screen televisions has led to a major shift in consumer preferences. The tax cut, which came into effect on September 22, 2025, has made TVs with screen sizes of 43-inch and above account for two-thirds of the total market share in the last quarter. This is a significant increase from just about half in January-March 2025, according to data from market tracker Counterpoint Research.
Market shift
Smaller screen segment suffers as consumers upgrade
The shift toward larger screens has been at the cost of smaller ones. Sales of entry-level 32-inch TVs, once the most popular segment in India, have been declining steadily with shipments down 8-10% year-on-year. In contrast, sales of large-screen models have surged by an estimated 20-25% since the GST cut. Anshika Jain, senior analyst at Counterpoint Research, said this tax relief has made premium screen sizes more accessible to middle-class households in tier II-III cities.
Price adjustments
GST reduction's impact on TV prices and market strategies
The government reduced GST on TVs with screen sizes over 32-inch from 28% to 18%, bringing the tax incidence in line with that of smaller models. This resulted in an immediate price cut of around 8-9%. For example, prices for a 43-inch model fell by ₹2,000-3,000 while those for a 55-inch and a 65-inch dropped by ₹4,000-5,000 and ₹7,000-10,000 respectively.
Strategic shifts
Brands adapt to changing consumer preferences
In response to the changing market dynamics, brands are also adapting their production and sales strategies. They are now focusing more on large-screen models, with some even reducing the sub-43-inch television segment to just one or two models. Pankaj Rana, CEO of Hisense India, said they would no longer push 32-inch models as their contribution is coming down from around 45% to nearly 30%.
Market revival
GST cut revives TV market and boosts 4K adoption
The demand for large screens has also revived a flat TV market. Reliance Retail, India's largest organized electronic retailer, reported record consumer sales last quarter at its stores and B2B accounts. Great Eastern Retail said the contribution of large-screen TVs to sales has increased by nearly 20%. Jain further noted that the GST reduction has also boosted the adoption of 4K TVs across different price segments.