Centre issues new guidelines to Bolster India’s domestic tyre industry

New Delhi, Aug 2 (KNN) The Ministry of Commerce and Industry on Tuesday issued new guidelines aimed at strengthening domestic tyre manufacturing industry.

The move comes as the Indian tyre industry is experiencing a surge in demand for both domestic sales and exports, driven by an increase in vehicle ownership and the rising mobility and industrialization.

“Considering the overall growth of tyre Industry in India, the ministry of commerce and industry has proposed fresh guidelines for tyre manufacturers committing to invest in India in brownfield or greenfield projects for manufacturing tyres, falling under the restricted list. Specific details are available with the concerned division of Department for Promotion of Industry and Internal Trade (DPIIT)," the ministry of commerce & industry said.

The official statement added that the increasing ownership of vehicles aids the tyre industry. There is also a surge in demand for tyres for trucks and buses owing to rising mobility and industrialization.

Other key factors that have aided the market growth for tyres include the focus on Research and Development (R&D) and the launch of advanced and eco-friendly tyres.

“Presently, import authorizations for new pneumatic tyres have been placed under the ‘restricted category’ in terms of Notification No. 12/2015-2000 dated 12-06-2020 issued by the DGFT, and hence, the importers have to apply for an Import License for tyres covered under the aforesaid notification," according to the ministry.  (KNN Bureau)