What Curbs On TV Imports Mean For The Industry

India’s clampdown on imports of televisions as part of its self-reliance push is unlikely to impact major manufacturers as they mostly make or assemble TVs in India.

The government put import of fully made televisions in ‘restricted’ list compared with ‘free’ imports allowed earlier, according to a July 20 notification. Importers will have to approach the Directorate General of Foreign Trade to apply for licences before importing TV sets.

India’s television market comprising all kinds TVs was worth nearly Rs 80,000 crore as of FY18, according to IBEF, a government-backed think tank. Imports, however, contribute less than a tenth of it. Big brands such as Samsung Electronics, LG, Xiaomi and Sony Corp. either manufacture TVs locally or outsource to contract manufacturers within the country.

India has announced several measures to curb imports from China after the deadly border standoff and boost local manufacturing. Restrictions on television imports is another in the series of measures.

India imported televisions worth Rs 5,500 crore in 2019-20, according to Ministry of Commerce. While total imports have declined over the years, imports of LCD televisions rose more than threefold in the past three years to Rs 3,800 crore.

Direct imports from China stood at Rs 566.5 crore. Bulk of the LCD TV imports (63 cm or 24.8 inches and bigger) came from Vietnam at Rs 2,986.4 crore. Therefore, the restrictions are unlikely to impact China as shipments are routed through Asean countries that have free-trade agreements with India.

To be sure, India’s focus on domestic TV manufacturing isn’t new. Since 2017, the government increased duties and taxes to boost local production.

December 2017: India increased import duty from 10% to 20% on finished LED televisions.
February 2018: Customs duty hiked from 7.5% to 15% on LCD modules.
September 2019: Duty on open cell panels removed.

Local Manufacturing

Over the last few years, many brands have set up manufacturing facilities or assembly lines in India. Panasonic, Xiaomi and Samsung make televisions in India. LG has a manufacturing unit in the country, according to its filings. Vu sources its televisions from outside India, according a report by Spark Capital.

Many of them have also outsourced production to contract manufacturers such as Dixon Technologies Ltd. The total market size for television industry stood at 14 million units in FY20, of which almost 25% was outsourced. Other contract manufacturers in India, largely catering to the LED category, include Foxconn, Skyworth, Videotex and Noble.