The Indian government, earlier this week, imposed restrictions on the import of colour TV sets in India. This move ensures that the companies that wish to sell colour TV sets in India will now have to seek a license from the Directorate General of Foreign Trade for doing so. Now, the Indian Cellular and Electronics Association (ICEA) has reacted to the development saying that the move had ‘surprised’ the industry at large.
“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 GOI is relentlessly pursuing domestic manufacturing,” ICEA Chairman Pankaj Mohindroo said in a statement.
ICEA said that while the government’s latest move will prove to be an important step in encouraging the domestic colour TV (CTV) industry to grow, the government needs to revamp its policies to boost development and manufacturing activity in the country.
‘For instance, 28% of GST on this so-called luxury item is a major setback that is restricting the growth of the domestic market off-take. Consequentially the high GST rate is leading to the growth of the informal/grey market segment and under-invoicing. It is already recommended by ICEA to rationalise to a GST rate of 18%,’ the body said.
The organisation highlighted that as of now approximately ₹500 - ₹600 crore worth of goods may be stuck at various ports which can lead to piling up of goods in the transit. And so, the body recommended that the restrictions should be applied for future imports after the clearance of goods in transits.
In addition to this, the organisation also highlighted that it will replicate the success it achieved in case of mobile handset and components manufacturing in other electronics sectors as well.
“ICEA is duty-bound to replicate the mammoth success witnessed in the mobile handset and its components manufacturing sector in various electronics hardware verticals including CTVs. ICEA’s emboldened vision to establish USD OneTrillion Electronics Hardware manufacturing eco-system in India by 2030-31 as part of our undiluted focus and commitments for Make in India and Aatmanirbhar Bharat,” he added.