Govt may restrict fridge imports

The government is considering restricting imports of refrigerators to promote local manufacturing, two industry sources said on Thursday, potentially freezing out shipments from Samsung Electronics Co and LG Electronics Inc in the $5 billion market.

The sources said the government was considering mandating that importers seek a licence from the authorities, replacing the free-import regime.

That could be followed by a ban on imports of refrigerators with refrigerant already added, to create opportunities for valueadded operations in India, said one of the sources, who to the government's discussions.

The source said a decision could come within a month, adding: "The thrust is to support all those who are manufacturing in India rather than those bringing them into India."

The trade ministry did not respond to requests for comment. Spokespeople for Samsung and LG also did not respond.

A licensing regime, the other source said, would raise the compliance burden and risk delaying imports.

The government estimates India's refrigerator market at more than $5 billion, with foreign companies such as Samsung and LG competing with domestic majors including the Tata conglomerate's Voltas.

The first source said India's annual fridge-making capacity was around 24 million units but demand was only some 15 million, a part of which is met by imports.

The government does not release figures for refrigerator imports, although the source said companies such as Samsung and LG import thousands of highend refrigerators annually.

An industry source said sales of large, high-end refrigerators, many of which are imported, have been growing rapidly, especially during the pandemic as people stayed indoors. Those imports account for roughly 5-6 per cent of total India sales.