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Govt restricts import of colour TV sets
New Delhi: The government has restricted the import of colour televisions to check their influx from China and encourage domestic manufacturing, two officials aware
New Delhi: The government has restricted the import of colour televisions to check their influx from China and encourage domestic manufacturing, two officials aware of the matter said. The Directorate General of Foreign Trade issued a notification on late Thursday, amending import policy for the televisions from free to restricted category.
This is the latest in a series of actions aimed at China that India has taken since 20 Indian soldiers were killed in a clash with Chinese troops along the contested Line of Actual Control (LAC) in Ladakh’s Galwan Valley on June 15. India on Thursday said there has been “some progress” towards disengagement along the LAC, though the process is far from complete and military commanders from the two sides were are set to meet for the fifth time to work out steps to complete the process.
India on June 29 banned 59, mostly Chinese, mobile applications like TikTok, calling them “prejudicial to sovereignty and integrity of India, defence of India, the security of the state and public order”. On July 23, it said bidders from the countries India shares its land borders with would need prior registration and security clearances for government contracts. The move was seen as part of India’s efforts to counter China. India in April issued a similar directive on screening foreign investment from neighbouring countries.
“Import of colour TV is now in the restricted category, which would necessitate an importer to seek import license from the government. The main purpose of this move is to check the influx of China TVs,” one of the officials said requesting anonymity. India has a Rs 15,000 crore TV industry and over 36% of TVs are imported primarily from China and South East Asia, he added.
A second official said some Chinese TV sets were routed through a third country with which India has a free trade agreement (FTA). “This move will also curb such illegal trade,” he said. Besides China, Vietnam, Malaysia, Hong Kong, Korea, Indonesia, Thailand, and Germany are major exporters of colour TVs. “Many such items enter the Indian market taking advantage of ASEAN [Association of Southeast Asian Nations]-India FTA... imports at reduced or zero duty put our domestic industry at a disadvantage. Such imports cannot be controlled through increased duty rates. Hence, the government is taking measures such as non-duty actions like import restrictions,” the first official said.
The ASEAN FTA was signed in 2009 with Indonesia, Thailand, Malaysia, Singapore, Philippines, Vietnam, Brunei, Cambodia, Myanmar, and Laos.
The second official said India has created necessary infrastructure and made arrangements to produce cost-effective electronic items under the Atmanirbhar Bharat Abhiyan (Self-reliant India Initiative), and will invite global manufacturers to set up units in the country.
India’s electronics industry grew from $29 billion in 2014 to $70 billion in 2019, according to the ministry of electronics and information technology (MeitY).
“Phased Manufacturing Programme for TVs is underway and specified parts like open cells, chips on films, printed circuit boards assembly are exempted from duties. Hence, India is ready for a shift of manufacturing to India with cost-effective imports of essential parts,” the first official said.
The officials said the move to restrict the influx of TV sets was taken after consultations with the domestic industry that aims to promote Make in India scheme, create jobs and provide goods at comparable rates.
Divakar Vijayasarathy, founder and managing partner at consultancy firm DVS Advisors LLP, said: “As there is no ban and only a restriction [is] being imposed, there is a possibility of such imports, however, with prior approval of the Directorate General of Foreign Trade. The procedural aspects of acquiring this permit [licence], however, would be tedious considering the stakes involved. There shall be transition provisions in place for import orders already being given or goods in transit.”
DK Aggarwal, president of PHD Chamber of Commerce and Industry appreciated the commerce ministry’s decision. “This move will restrict the irrational dumping of coloured television into the Indian market and cut inbound shipments of non-essential items from China and other Asian countries, which was severely damaging the survival and competency of our domestic manufacturers,” he said.
