Indian Smart TV Industry has ridden factors such as implanted audiences that consume content in their homes, the availability of regional content and some upscale technological advances on TV, which are served to them at affordable prices.
However, with the upcoming Union budget, we need to be well prepared to ensure that India is on its way to become fully ‘Atmanirbhar.’ In the midst of the third wave of the ongoing Covid-19 pandemic, it has become more relevant for India for India to make efforts to build itself as an alternative smart TV market.
This industry faces challenges both in terms of trade and market.
In connection with trade, we see how monopoly one country for semiconductor production and display panel, the main component for each electronic item, pushes prices to achieve unprecedented high, a 400% increase, along with its shortcomings.
In terms of markets, the second wave of the Coronavirus pandemic decreases unused income and discretionary expenditure because everything enters health services.
Some industrial demand if considered can ensure further growth for the smart TV industry and even the overall electronics industry.
First, GST for a size greater than 32 inches smart TV must be under a slab of 18%, because this is the highest in the world.
GST 18% on products will result in price reductions by manufacturers and brand owners, which can help expand its market.
Second, earlier this year, the Indian government announced its investment in the amount of RS 76,000 crores towards building semiconductors and the display panel industry.
Focus on these efforts need to remain until the results are achieved.
India has become the world’s largest software exporter, and which is combined with being a leader in the hardware industry can change the game.
The display panel and semiconductors will consist of 70% of the costs if this ecosystem is made in India.
This step will be proven to be a gamechanger in terms of supply, availability and cost effectiveness in making television devices.
More importantly, dependence on one country for raw materials will end.
This will also lead to increased income through exports and create employment opportunities.
We ask the government to have a schedule for the implementation of these projects under the PLI scheme, and this should not be limited until the memorandum of understanding (MoU).
We can see the results on the ground in the next two years or more.
The world needs an alternative to existing monopolistic regimes, so prices and availability remain stable throughout, unlike what we have seen since Covid-19 began.
Finally, the government needs to establish a structure in its place, in the case of Covid-19 continues, or for other global emergencies that may arise in the near future.
We cannot stop the industry.
The non-essential goods industry also has a livelihood depending on it.
Many people have lost their jobs, a scale that has placed a large dent on Indian GDP.
The loss is more than we see at its value.
GDP may begin to increase now, but an emergency plan must be done to avoid the loss.
(Avneet Singh Marwah is CEO, Super Plastronics, Kodak Brand Licensee)
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