Commerce Ministry releases a list of 102 goods to ministries in order to improve domestic capacity and reduce imports

According to an official, the commerce ministry has shared a list of up to 102 products whose imports are high and consistently increasing, such as coking coal, certain machinery, some chemicals, and digital cameras, with other ministries in order to look into ways to increase domestic capacity in order to reduce imports. As part of an effort to minimize the country’s import bill, the ministry has conducted a thorough examination of these 102 products in order to improve domestic manufacturing potential for those commodities.

According to the analysis, imports of these items have been steadily increasing or have maintained high import proportions over the long, medium, and short periods.

During the March-August 2021 period, these items account for 57.66% of total imports.

“These items have domestic production opportunities,” the official said, adding that the commerce ministry has recommended products from other departments and ministries that are experiencing high import growth and may be prioritized for quick interventions to improve local production.

Out of 102 products, 18 have both a high share and a high rate of import increase. Gold, crude palm oil, integrated circuits, personal computers, urea, stainless steel waste, refined copper, cameras, voice and picture communication machines, sunflower seed oil, and phosphoric acid are among them.

The primary goal of identification is to lessen their reliance on imports, as their imports are steadily increasing and account for a sizable portion of the total value of imports.

“As the records show that these commodities have been constantly required for import in all eras,” the official noted, “it is supply rigidities in the home sector that need to be remedied.”

Industry, IT and electronics, mines, heavy industry, pharmaceuticals, steel, oil and natural gas, fertilizer, telecommunication, shipping, food processing, and textiles are among the ministries and departments that have received the list.

According to preliminary official data, India’s merchandise imports in April-October 2021 totaled USD 331.29 billion, a 78.71% rise over USD 185.38 billion in April-October 2020 and USD 286.07 billion in April-October 2019.