65-70% of a TV’s Pro­duc­tion Value

The Economic Times - - Pure Pol­i­tics -

Most items im­ported un­der free trade agree­ments are not charged duty.

The elec­tron­ics min­istry has al­ready con­sulted twice with se­nior of­fi­cials of Sam­sung and LG and with of­fi­cials of the Con­sumer Elec­tron­ics and Ap­pli­ances Man­u­fac­tur­ers As­so­ci­a­tion (CEAMA) to un­der­stand the is­sues.

“Ev­ery area that en­cour­ages do­mes­tic man­u­fac­tur­ing is an area of fo­cus. We have re­ceived rep­re­sen­ta­tions from the in­dus­try and com­pany of­fi­cials to re­duce duty on open cell TV pan­els to 0%. It is un­der se­ri­ous con­sid­er­a­tion and a de­ci­sion is likely soon,” the min­istry of­fi­cial said, re­quest­ing anonymity. How­ever, an LG In­dia spokesper­son said the com­pany be­lieves in ‘Make in In­dia’ and will con­tinue lo­cal pro­duc­tion. “Ev­ery year, we con­tin­u­ously in­vest to strengthen our man­u­fac­tur­ing fa­cil­i­ties and will con­tinue do­ing the same in fu­ture. In fact, we are man­u­fac­tur­ing our en­tire line-up of TVs, in­clud­ing pre­mium range, in In­dia,” the spokesper­son said.

Emails to Sam­sung In­dia re­mained unan­swered till Mon­day press time.

Im­ports from Asean surged last year af­ter Sam­sung started bring­ing TVs in from Viet­nam. The vol­ume of TV sets from Viet­nam surged from 16,000 units in 2017-18 to over 600,000 units in the April-Oc­to­ber pe­riod of 2018-19 alone, ac­cord­ing to data col­lated by CEAMA from the min­istry of com­merce and in­dus­try. Im­ports from other coun­tries were lower in the same pe­riod. The gov­ern­ment first im­posed 10% im­port duty on open cell TV pan­els in the Fe­bru­ary 2018 bud­get and re­duced it to 5% in March af­ter the in­dus­try said it would af­fect in­vest­ment. Open cell pan­els – which re­quire some as­sem­bling and value-ad­di­tion be­fore be­ing ready – ac­count for 65-70% of a tele­vi­sion’s pro­duc­tion value.

Con­tract man­u­fac­turer Dixon Tech­nolo­gies chair­man Su­nil Vachani said there are no open cell panel man­u­fac­tur­ing plants in In­dia and set­ting up one of th­ese hi-tech fa­cil­i­ties will take about four years.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.