Commerce and Industry Minister Piyush Goyal on Thursday assured that the government has no immediate plans to impose import restrictions on non-essential imports, even though it is closely being monitored for the evolving global economic and geopolitical situation.
While commenting on the measures planned by the government to address the widening current account deficit (CAD) due to the falling value of Indian Rupees against the US dollar, he said, "We are monitoring the situation. All the various arms of the government are working as a team. Seven steps are under consideration — the situation is globally challenging."
The minister’s remarks assume significance amid growing concerns over India’s widening import bill, particularly due to elevated crude oil and gold prices triggered by geopolitical tensions in West Asia.
Economists and industry observers have flagged risks to the current account deficit if commodity prices remain high for a prolonged period.
While the government has not declared any import restrictions on any items except precious metals like gold, silver and platinum, Prime Minister Narendra Modi recently appealed to the citizens to reduce purchases of imported goods such as gold and focus on domestic products to strengthen the economy and support self-reliance.
The Ministry of Finance increased the import duty on gold and silver from 6% to 15% following Modi's appeal to the citizens. While the Prime Minister also urged to reduce foreign travel in the next one year, government affirmed that there is no plan of imposing tax on foreign travel.