India is keen to lower imports of 102 products, including computers, urea, cotton, lentils, cameras, tractor parts and machinery. These have been on the rise.
The commerce and industry ministry has identified these 'priority products' and asked at least 15 other ministries to explore ways to enhance domestic manufacturing capacity to reduce imports.
The products, identified on HS codes at 8-digit (tariff lines), have been shared with the respective ministries, textiles, steel, oil and natural gas, fertiliser, and IT and electronics. "Imports of many products with high domestic production potential have increased. This is an area of concern," said an official aware of developments.
As per the analysis, items which have an average import value of $500 million for March-August (short run) and $1 billion per year across three years (FY19-FY21) and 10 years (FY12-FY21), have been selected. The cumulative share of these items in total imports in March-August 2021 is 57.6%.
Maximum number of products, 18, have been identified for the Department of Chemicals and Petrochemicals, 14 each for the industry department and ministry of electronics and IT, and 10 each for the heavy industries and mines ministries.
Of the 102 products, 18 have both high share and high import growth rates. The ministry has identified 88 items with high growth potential.
In the first seven months of the fiscal, imports rose 78.7% on-year to $331.29 billion.
"We will hold consultations with industry to explore ways of increasing the manufacturing capacity here and reduce their imports," the official added.
Source : economictimes.indiatimes.com