For the uninitiated, the Directorate General of Foreign Trade (DGFT) has not too long ago amended a coverage that restricts imports of TV units. Right now, nearly 35% of TVs bought in India are imported – primarily from China, Vietnam, and Malaysia.
Xiaomi’s choice to favor the choice doesn’t actually come as a shock since it isn’t even considerably affected by this modification. In truth, the corporate says it regionally manufactures over 85 % of the Mi TVs bought in India.
“Currently, over 85% of our Mi TVs sold in India are manufactured in India. We believe that this decision will encourage and give a boost to local manufacturing,” mentioned a Xiaomi India spokesperson.
On the opposite hand, this coverage will have an effect on unfamiliar manufacturers that handle to promote a number of TV models by e-commerce platforms resembling Amazon and Flipkart. In the fiscal yr 2020, complete imports beneath restricted class have been value $781 million, of which Vietnam accounted for $428.37 million and China contributed $292.48 million.
The change in coverage in all probability gained’t have an effect on end-users in a noticeable method by way of pricing of TVs and their availability. This is as a result of well-liked good TV manufacturers are already assembling their TVs in India.
It is value noting that the authorities has not imposed a ‘ban’ on TV imports. Brands can have the likelihood to hunt a related license from the federal government to proceed with the imports.