In a move to boost the Make in India initiative, the Government of India has imposed restrictions on importing color TVs set in the country. The government has imposed restrictions on the import of televisions sets and has put them into the restricted list.
The government has revealed that imports of TVs in certain categories will now require a license from the government. The Directorate General of Foreign Trade (DGFT) revealed this information in a notification. The DGFT further revealed that it will issue the procedure for the grant of the license separately. The restriction is imposed on the Colour category of TVs, however, there is no restriction on monochrome TVs.
The move is said to boost the Make in India movement and it will help to boost the domestic production of TVs in the country. The move will help in investment in assembly lines and component production. The move will impact the business of multiple TV manufacturers including Vu Television and TCL. The move will also impact some high-end Smart TVs from brands like Sony, Samsung, Xiaomi, LG, and more.
On Thursday imposed restrictions on imports of color television sets, intending to encourage local manufacturing and check imports from China.
color television sets worth $781 million were imported in the year ended 31 March, most of which came from Vietnam ($428 million) and China ($292 million).
“Actual user conditions would not be applicable for importers applying for an authorization to import the goods ‘restricted’ in this notification. The procedure for grant of the license will be separately issued by DGFT (Directorate General of Foreign Trade),” the notification said.
Chinese imports and investments have been facing intense scrutiny in India after a border clash left 20 Indian soldiers and an unspecified number of Chinese troops dead.
India is aiming at limiting trade links with China as part of a policy to cut dependence on its northern neighbor. The government in April notified changes to its foreign direct investment (FDI) policy by mandating government clearance for all FDI inflows from countries with whom it shares land borders.
Many industry experts believe that the move will stop the indiscriminate import of TVs from China and other countries like Thailand and Malaysia. For the unintended, India has a Free Trade Agreement (FTA) with the ASEAN countries including Vietnam. However, it is suspected that electronic goods from China are imported to India through the Southeast Asian country.