The television manufacturing sector in India stands at a critical juncture, facing an array of challenges and opportunities shaped by global supply chain dynamics. As the country aspires to enhance its manufacturing capabilities and achieve self-reliance, understanding the intricate supply chain for raw materials and key components is paramount.
India's TV manufacturing sector is currently intricately linked to the global supply chain for raw materials, particularly semiconductors and display fabs, commonly known as open cells. The reliance on imports for these key components significantly influences the industry's dynamics. Open cells constitute more than half of the total material cost in TV manufacturing, making their availability and pricing crucial to the sector's stability and growth.
Since the COVID-19 pandemic, not only television manufacturers but the entire electronics manufacturing industry has faced challenges. The pandemic disrupted supply chains globally, leading to fluctuating prices and inconsistent availability of essential components. Open cell prices, for instance, have experienced a dramatic increase, sometimes soaring by up to 100 per cent within a single month. This volatility has made it increasingly difficult for manufacturers to plan and budget effectively, ultimately impacting end-consumers with higher prices and limited product availability. Geopolitical tensions further complicate the scenario. Conflicts, such as those between Taiwan and China, have had far-reaching effects on global trade. While the Russia-Ukraine war might not have directly impacted the supply chain as severely as the pandemic, it has created an environment of uncertainty and instability. Currently, disruptions in the Red Sea due to tensions between Israel and Iran add another layer of complexity affecting the global supply chain.
The industry's heavy reliance on a limited number of suppliers for open cells, primarily from China and Taiwan, puts India in a vulnerable position. This dependency means that any disruptions or strategic manipulations by these suppliers can create significant shortages in the market, leading to artificial scarcity and inflated prices. Such situations make it extremely challenging for TV manufacturers in India to maintain a steady production line and meet consumer demand.
Recognising these vulnerabilities, many players in the industry have taken proactive measures over the past three to four years to strengthen their inventory and supplier relationships. Effective inventory management and robust supplier relations have become critical to navigating supply chain uncertainties. Companies are now focusing on building strategic partnerships and diversifying their supplier base to mitigate the risks associated with over-reliance on a few sources. This shift towards more resilient supply chain strategies ensures a more consistent flow of raw materials and helps buffer against sudden market fluctuations.
Despite these efforts, the long-term solution lies in reducing dependency on imports by enhancing domestic production capabilities. For India to truly achieve self-reliance, or 'Atmanirbhar Bharat,' in the TV manufacturing sector, there is a pressing need to develop indigenous semiconductor and display fab manufacturing facilities. Establishing a strong domestic manufacturing base for these critical components would not only stabilise the supply chain but also foster technological advancements and economic growth within the country.
The Indian government and the private sector must collaborate to address this issue comprehensively. The government can play a pivotal role by creating a conducive environment for investment in semiconductor and display fab manufacturing. This includes offering incentives such as tax breaks, subsidies, and grants to encourage both domestic and international companies to set up manufacturing units in India. Additionally, investing in research and development (R&D) and fostering innovation within the country are crucial steps towards building a self[1]sustaining ecosystem.
Collaborative efforts between the government and the private sector will be essential in achieving this vision, paving the way for a self-reliant and robust TV manufacturing ecosystem in India.
