Government to take steps to correct distorted import duty structure
Updated: Jul 23, 2013 05:56:18pm
New Delhi, Jul 23 (KNN) The Department of Heavy Industries will identify certain capital goods segments which have suffered because of distorted duty structures under which import levy on finished products is less than the raw material.
Such a duty structure is called inverted structure under which there is not much incentive for the domestic industry to manufacture since the landed cost of finished products is quite low.
“The Department of Heavy Industry is to indicate those tariff lines in the capital goods sector which have substantive manufacturing capacity but have suffered for reasons of inverted duty structures or other trade related measures, so that correctives as appropriate, maybe put in place,” an official statement said, after a review meeting of the manufacturing sector by Commerce and Industry Minister, Anand Sharma, here today.
The meeting which was attended by secretaries of different departments including Heavy Industry, Economic Affairs and MSME, also reviewed several other issues which are coming in the way of stepping up growth in the beleaguered manufacturing sector.
The capital goods sector has been one of the poor performers in the basket of industrial goods which has shown de-growth in the month of May by 1.6 per cent. (KNN)
Such a duty structure is called inverted structure under which there is not much incentive for the domestic industry to manufacture since the landed cost of finished products is quite low.
“The Department of Heavy Industry is to indicate those tariff lines in the capital goods sector which have substantive manufacturing capacity but have suffered for reasons of inverted duty structures or other trade related measures, so that correctives as appropriate, maybe put in place,” an official statement said, after a review meeting of the manufacturing sector by Commerce and Industry Minister, Anand Sharma, here today.
The meeting which was attended by secretaries of different departments including Heavy Industry, Economic Affairs and MSME, also reviewed several other issues which are coming in the way of stepping up growth in the beleaguered manufacturing sector.
The capital goods sector has been one of the poor performers in the basket of industrial goods which has shown de-growth in the month of May by 1.6 per cent. (KNN)
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