Govt's move to restrict colour TVs imports will boost local manufacturing: Industry body

New Delhi: The Indian Cellular and Electronics Association (ICEA) welcomed the government’s move restricting imports of colour TVs saying India has enough manufacturing capacity and the much needed move will boost local production.“The industry was surprised by the government’s new decision to restrict the import of Colour TVs clocking upto INR 600-700 crores per month a substantial portion of which was coming from the zero-duty FTA ASEAN countries,” the body said in a statement on Friday.“The restrictions mandated through the Import licensing regime as per the new GOI notification will stop the unrestricted inflow of finished goods/CBU’s. Imports of CBU’s in 2019-20 crossed Rs 5,000 crores.”Chairman Pankaj Mohindroo said that India was losing jobs as imports continued unabated. “We should now as an industry and as a nation rapidly build huge capacities for exports and also build the component industry especially the open cell/display industry.”Open Cells contribute nearly 70 per cent of BOM (Bill of Material cost for TVs. Besides he urged the government to rationalise the 28 per cent goods and services tax rate on “so-called luxury item” which is leading to the proliferation of grey market and under invoicing.He also requested that the import restriction must apply on future imports and not on goods in transit which are estimated to be worth Rs 500-600 crore.“It is recommended that the government should issue stock and sales licensing model for goods already in transit and commitments already made for firm contacts,” Mohindroo said.