PLI, Quality Norms Assist In Import Reduction Of Non-essential Goods

New Delhi, Nov 6 (KNN) Different steps such as inbound shipments of certain goods, production-linked incentive (PLI) scheme and mandatory quality norms have helped in reducing import of non-essential products, reported ET.

To cut imports, the government has increased customs duty on gold, imposed curbs on inbound shipments of television, levied minimum import price on some goods, introduced National Food Security Mission (Oilseeds and Oil Palm) Scheme, and blending of ethanol in oil.

According to an analysis of the Commerce and Industry Ministry, import restrictions imposed on tyres helped cut the inbound shipments by 74 per cent to USD 74 million in 2022-23 from USD 276 million in 2019-20. 

Steps such as curbs on inbound shipments of certain goods, production-linked incentive scheme and mandatory quality norms are helping the country reduce imports of non-essential products such as TV, tyres, wallpaper and AC gas compressors.

These steps, among others like imposing antidumping and countervailing duties, have been taken to analyse and control non-essential imports and to augment domestic production capacity in import intensive sectors, an official said. 

Calendar year wise, these imports declined to USD 36 million till July this year as against USD 353 million in 2018. 

The government in June 2020 imposed import curbs on certain new pneumatic tyres used in motor cars, buses, lorries and motorcycles to promote domestic manufacturing and contain imports from countries like China. 

The official said that an inter-ministerial committee meets regularly to discuss ways to cut imports of non-essential goods. 

“The commerce and industry ministry is sensitising other ministries to see areas where we have competitiveness and where we can increase our manufacturing and cut import of those goods,” the official added. 

The sensitisation initiative is yielding positive results as information flow among different ministries and departments has started. 

“The information flow is helping in analysing data and framing specific policy interventions like PLI,” the official said. 

(KNN Bureau)