Samsung not keen on govt offers, seeks more concessions to restart television production in India
Country's largest electronics manufacturer, Samsung, is not keen to accept government’s offer of concessions to restart television production, which was shifted to Vietnam last year.
Samsung shifted television production to Vietnam after India hiked import duty on components in the 2018 Budget
The South Korean firm was making about three lakh television sets per year at its factory in Chennai
The government has sought commitment from Samsung to restart production in India against duty relief
Amid reports that the Central government has offered to slash customs duty on certain key components that is used for television manufacturing, South Korean electronics major Samsung has sought more concessions to restart television production in India, said media reports.
Samsung, country's largest electronics manufacturer, is not keen to accept government’s offer of concessions to restart television production, which was shifted to Vietnam last year, said a report in Business Standard.
Samsung India may seek more benefits from the government such as lower corporate tax and tax holiday, in line with the Vietnam offers, sources in the know were quoted as saying in the report.
In a major set back to the government's ambitious 'Make in India' programme, Samsung had last year shifted the television production to Vietnam after India doubled the import duty of LCD and LED television panels to 15 percent from 7.5 percent in the 2018 Union Budget.
This had made commercial production of television unviable for the company and it gradually wound up manufacturing at its Chennai facility, said a report in The Times of India.
Samsung, which has a 30 percent market share last year, was making about three lakh television sets per year at its factory in Chennai, said the report.
The government, as part of wooing Samsung to restart production in the country, has sought a commitment that the firm would start television manufacturing again in India if duty on ‘open cells’—which prompted it to relocate the production facility to Vietnam—was waived, according to a report in The Economic Times.
The government had raised import duty on 'open cells' to 10 percent from zero in the 2018 Budget and later it was reduced to 5 percent after the industry immediately demanded a withdrawal of the duty hike, the report said.
As per reports in 2018, the total TV market in the country is estimated to be Rs 50,000 crore and is growing at 7-8 percent, according to a PTI report.
Samsung had last year started the world's largest mobile phone factory in Noida which would double its annual handset production capacity to 120 million units by 2020.
— With PTI inputs
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