STOCK MARKET BSE NSE

Slew of incentives and new tariff walls: Indian government mulls vocal-for-local push

Among other measures, Government departments and PSUs will be asked to assist domestic industry by encouraging procurement of 'Made in India' products for their use.

Published: 21st July 2020 07:14 PM  |   Last Updated: 21st July 2020 07:14 PM   |  A+A-

coronavirus, COVID 19, corona warriors

A cyclist paddles infront of a graffiti which is dedicated to corona warriors in New Delhi. (File Photo | Anil Shakya, EPS)

Express News Service

NEW DELHI: As part of a series of steps to revive the economy, the Government is mulling a slew of incentives for local production, while building tariff walls to protect them from an expected flood of cheap imports.
 
The Government is considering proposals to come up with a package of incentives for fresh capital expenditure as well as plant upgradation plans and research and development projects in a  bid to incentivise domestic industries in selected sectors.
 
At the same time, it will be asking government departments and PSUs to assist domestic industry by encouraging procurement of 'Made in India' products for their use. Central departments and States will be asked to relax labour laws especially in SEZs and come up with single-window clearances for new industries.
 
"Some of this was being planned as part of attempts to woo industry from China. But now plans are larger as an attempt to revive manufacturing and Make in India," said officials. 

India is keen that many of the factories fleeing China after the spread of coronavirus and disruption of global-supply chains shift to the country's shores, but till now has had limited success in wooing companies to India. 
 
Both Commerce and Finance Ministries also believe that as manufacturing revives in rival countries, these nations would start dumping goods at extremely cheap rates in the global markets as their own domestic and export demands would remain low.  

ALSO READ | Zoom to set up new tech centre in Bengaluru after it sees 6700% growth; hiring across various verticals to begin soon

"We are already witnessing this in the case of China and some other East Asian countries where manufacturing has restarted in a bigger way. We have started anti-dumping probes against these imports. But our apprehension is that a larger wave of cheap imports is in the offing and unless we take steps, these would hurt domestic production which has just started reviving," officials said.
 
Commerce Ministry has already identified sectors which would need duty protection including solar, electrical, machinery and auto parts industries. "Many of these are in the MSME sectors and are particularly vulnerable to intense price competition," officials said.
 
Officials said power equipment, mobiles and a host of other items purchased by the Government will now on have to be Indian made. Even the defence ministry has been roped in and attempts will be made to buy indigenous products.
 
Recently, the Government decided to give state-run BEML the contract to make mine ploughs attached to T-90 tanks for an estimated Rs 557 crore under a 'Buy and Make' in India programme. 
 
Officials pointed out that some of the moves were already bearing fruit. In the mobile phone market, beside Foxconn and Wistron Corp, now the world’s second-largest iPhone maker Pegatron, is also planning to set up a factory here.

ALSO SEE:



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp