Government puts import restrictions on colour television sets
The government has imposed restrictions on imports of colour television sets in an attempt to promote the domestic manufacturing of these items and also cut inbound shipments of non-essential items from countries like China. The Directorate General of Free Trade has changed the import policy for colour television sets as restricted from free.
Highlights
The government has imposed the curbs on TV sets of screen size 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. The restrictions will imply that the importer of that commodity will have to seek a license from the commerce ministry’s DGFT for the imports.
Background
India imported colour TV sets of $781 million in 2019-20. Imports from Vietnam and China stood at $428 million and $293 million respectively in the last financial year. The major exporters of these items are China, Vietnam, Malaysia, Hong Kong, Korea, Indonesia, Thailand, Germany, etc.
Possible Impact
This is going to have a positive impact on domestic assembling industry in the country. The leading brands in this segment already have manufacturing and assembling units in the country and they are not going to be affected much by this decision. Overall, the decision is expected to have a procedural impact on the majority of companies doing business in India.
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Month: Current Affairs - July, 2020