Webinar :Register now for Commodity Ki Paathshala webinar on ‘FPOs & Agriculture Marketing-The Beginning of a New Era’ on January 22, 4pm

Restrictions on import of colour TVs into India unlikely to impact prices significantly

In FY20, TVs imported into India stood at $781 million. Of this, $428 million was from Vietnam and $293 million was from China

August 01, 2020 / 04:51 AM IST

The curbs imposed on the import of colour televisions (TVs) into India are unlikely to significantly impact prices in the short run.

"Depends on the extent of local manufacturing. Some if it is being manufactured locally and some are being imported. So in the short run, there could be a slight price impact," said Rajat Kathuria, Director and Chief Executive, Indian Council for Research on International Economic Relations (ICRIER).

On July 30, the government restricted import of colour TVs in a move that is being viewed as a move to boost domestic manufacturing and reduce inbound shipments of non-essential items from countries like China.

In FY20, TVs imported into India stood at $781 million. Of this, $428 million was from Vietnam and $293 million was from China. This includes a number of relatively unknown brands as well as known brands like Xiaomi’s Mi TV range, Samsung’s LED TVs and more.

"Import policy of colour TVs.....is amended from free to restricted," a notification from the Directorate General of Foreign Trade (DGFT) read. The curbs are imposed on TV sets of all screen sizes, ranging from up to 36 cm to over 105 cm. Liquid crystal display (LCD) television sets of screen size below 63 cm are also covered under the restrictions.

Close

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

China is the largest exporter of TV sets in India, followed by countries like Vietnam, Malaysia, Hong Kong, Korea, Indonesia, Thailand, and Germany. In FY19, imports from Vietnam and China stood at $428 million and $293 million, respectively.

India's television manufacturing market is divided majorly into two broad categories -- premium TV brands, which include companies such as Sony, Samsung, Sony and LG. There are also brands like Xiaomi, Vu, TCL, Realme and Nokia, which focus on the more affordable price points. Then there are brands such as OnePlus, which try to play their part in both price segments. Sony, Samsung, LG and Xiaomi have been big players in the TV segment in India for a while now, with a sizeable portion of inventory.

This is the latest in a series of moves to cut down India's import dependence, especially on China. On June 23, the government made it mandatory for sellers on the Government e-Marketplace (GeM) portal to clarify the country of origin of their goods when registering new products

The government had also announced an interim ban on 59 apps with Chinese links, including TikTok, ShareIt, UC Browser, CamScanner and WeChat, citing 'emergent threats' to the country’s sovereignty and national security.

India also restricted countries, which it shares land borders with, from bidding for public procurements projects without prior approval from competent authorities – blocking Chinese companies from the fray.

"If China decides to restrict exports to India, then there could be a problem for us," Biswajit Dhar, professor at Jawaharlal Nehru University’s Centre for Economic Studies and Planning, said.

In FY19, bilateral trade between China and India was worth $88 billion, with a trade deficit of $53.5 billion in China’s favour, the widest India has with any country.

China is one of India’s leading trade partners and constitutes 9 percent of India’s total exports and 18 percent of total merchandise imports.

Import dependency on China for a range of raw materials (active pharmaceutical ingredients, basic chemicals, agro-intermediates) and critical components (auto, durables, capital goods) is skewed.

Of the respective imports, 20 percent of auto components, 70 percent of electronic components, 45 percent of consumer durables, 70 percent of APIs and 40 percent of leather goods imported are from China.

"Our dependence on China is much higher than their dependence on us. We export mainly raw materials to then, which is the chief input of their value addition. We matter very little in their scheme of things. For China, any retaliation has to go beyond trade to make sense. Maybe they would retaliate politically," Kathuria said.

 
Kamalika Ghosh
first published: Jul 31, 2020 05:11 pm
Sections