TV companies may cut down production in India and opt for importing finished TVs through zero duty FTA.
“If the import duty was abolished, companies would have passed on the benefit to consumers to revive sales when the television industry is already facing a tough time.” – Panasonic India president Manish Sharma
- Importing TVs from countries with which India has free trade agreement leads to a 5% net savings for TV manufacturer.
- Government hasn’t reduced the 5% import duty on open cell television panels in the budget, which accounts for 70% of the cost.
- Sony is the major brand which has followed the FTA route with importing TVs from Thailand and Malaysia.
- Samsung has been importing TVs from Vietnam since last year after completely shutting down TV production in India.
- Other major brands such as LG and Panasonic along with Kodak and Thomson may soon follow the footsteps of Sony and Samsung.
- The electronics and IT ministry had last week informed Parliament that import of television surged 45 per cent to Rs 7,224 crore in 2018-19 from countries like China, Vietnam, Malaysia, Hong Kong, and Taiwan.