Restrictions on TV imports to help domestic industry build capacities: ICEA

The government's move to put restrictions on imports of colour televisions will encourage the domestic industry as well as help build capacities for exports, according to industry body ICEA.

The India Cellular & Electronics Association (ICEA) said it has been a long-standing demand to put restrictions on the import of colour televisions (CTVs) to encourage domestic manufacturing activity.

CTVs up to Rs 600-700 crore were being imported from ASEAN countries, through zero-duty FTA, it said in a statement.

"Government's move to put restrictions on imports of colour televisions, which was reported at USD 780 million in 2019-20, has surprised the industry. This decision is clearly indicating that the government is relentlessly pursuing domestic manufacturing. It is time to herald a new journey in the Indian CTV manufacturing sector leading to acquiring global-scale manufacturing status for India," said ICEA Chairman Pankaj Mohindroo.

The government on last Thursday imposed restrictions on TV imports, a move aimed at promoting domestic manufacturing and cut inbound shipments of non-essential items from countries like China.

The Directorate General of Foreign Trade (DGFT) in a notification has put imports of TV under a restricted category from free, which means importer of that commodity will have to seek licence from the commerce ministry's DGFT for the imports.

The curbs are imposed on TV sets of screen size ranging from up to 36 cm to over 105 cm. Liquid crystal display (LCD) television sets of screen size below 63 cm are also covered under the restrictions.

"ICEA first took this up with the government very vigorously. We have sufficient manufacturing capacity in India and therefore imports of CBU's are not necessary. We are losing precious jobs because of unabated imports. We should now as an industry and as a nation rapidly build huge capacities for exports and also build the component industry especially the open cell/display industry," said Mohindroo.

ICEA is fully focussed and committed to establishing India as a leading manufacturing destination for each and every category of electronics products which includes CTVs, it added.

"ICEA is duty-bound to replicate the mammoth success witnessed in the mobile handset and components manufacturing sector in various electronics hardware verticals including CTVs,"Mohindroosaid.

ICEA fully understands and believes that in the post-COVID manufacturing reorientation, India can emerge to be the preferred manufacturing destination for CTVs and its major components including Open Cells which contribute nearly 70 per cent of the BOM (bill of material) cost, he said.