Lok Sabha Question No. 530 (UNSTARRED), answered on 2023-12-06
Subject: Imports
Ministry: COMMERCE AND INDUSTRY
Asked by: Pritam Gopinath Munde

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO.530 TO BE ANSWERED ON 06/12/2023

## IMPORTS

## 530. DR. PRITAM GOPINATHRAO MUNDE:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मं त्री ) be pleased to state:

- (a) whether the high imports affect the country's foreign currency exchange rates;
- (b) if  so,  whether  it  is  a  fact  that  production-linked  incentive  scheme  and  mandatory quality norms are helping the country reduce imports of nonessential products such as TV, tyres, wallpaper and AC gas compressors;
- (c) if so, the facts in this regard and the extent to which import of such goods has been reduced after implementation of production linked incentive scheme;
- (d) whether  the  Central  Government  is  sensitizing  all  other  Ministries  to  see  areas where  we  have  competitiveness  and  where  we  can  increase  our  manufacturing  and  cut import of those goods;
- (e) if so, the facts in this regard; and
- (f) the other steps taken by the Central Government to reduce the current trade deficit?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jherh vuqfiz;k iVsy½

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

- (a) The exchange rate of rupee is market determined and is a function of multiple factors.
- (b) The  objective  of  the  PLI  Schemes  is  to make  domestic  manufacturing  globally competitive  and  the  objective  of  mandatory  quality  norm  is  to  ensure  that  customers  have access to quality products that meet the necessary standards. Both the initiatives are expected to help the country in enhancing production capacity and reducing substandard products

- (c) As far as imported goods such as TVs, Tyre, Wallpaper, and AC gas compressors are concerned,  the  trade  data  indicated  that  there  are  several  categories  of  import  of  such products  where  there  has  been  considerable  reduction  in  imports  or  the  imports  have significantly low value in the overall import basket as given below:

Table: Imports of some specific commodities (Value in USD Million)

|   S. No. |   HS Code | Commodity                                                                            |   2021- 22 |   2022- 23 |   Apr-Oct 2022 |   Apr-Oct 2023 (A) |   Growth % |
|----------|-----------|--------------------------------------------------------------------------------------|------------|------------|----------------|--------------------|------------|
|        1 |  85287213 | Television set of screen size exceeding 54 cm but not exceeding 68 cm                |       0.25 |       0.13 |           0.1  |               0.02 |     -76.08 |
|        2 |  85287214 | Television set of screen size exceeding 68 cm but not exceeding 74 cm                |       0    |       0.07 |           0.07 |               0.04 |     -44.96 |
|        3 |  85287215 | Colour TV set of screen size between 74 - 87 cm                                      |       0.2  |       0.17 |           0.12 |               0.03 |     -76.81 |
|        4 |  85287219 | LCD TV set; Other                                                                    |      14.54 |      28.19 |          20.7  |              20.04 |      -3.21 |
|        5 |  40111010 | Radials tyres used on motor cars                                                     |      95.33 |      52.06 |          33.7  |              28.06 |     -16.72 |
|        6 |  40111090 | Tyres used on motor cars: Other                                                      |       3.56 |       1.52 |           1.35 |               0.4  |     -70.24 |
|        7 |  40112010 | Radials tyres used on buses/lorries                                                  |      16.92 |       9.46 |           7.53 |               1.01 |     -86.65 |
|        8 |  40112090 | Tyres used on buses/lorries: Other                                                   |       0.63 |       0.4  |           0.22 |               0.12 |     -47.43 |
|        9 |  40114020 | Tyres for motor scooters                                                             |       0.01 |       0.95 |           0.69 |               0.46 |     -33.48 |
|       10 |  40115090 | Tyres of a kind used for bicycles: Other                                             |       1.2  |       0.56 |           0.44 |               0.1  |     -77.9  |
|       11 |  40117000 | Tyres used on agricultural or forestry vehicles and machines                         |       1.21 |       1.23 |           0.59 |               0.53 |     -10.95 |
|       12 |  48142000 | Wallpaper and similar wall coverings of paper, consisting of paper coated or covered |      38.14 |     212.86 |          85.29 |              14.19 |     -83.36 |
|       13 |  48149000 | Wallpaper and similar wallcoverings of paper, and window transparencies of paper     |       4.77 |       4.23 |           2.51 |               2.3  |      -8.49 |
|       14 |  84148011 | Gas compressors of a kind used in air-conditioning equipment                         |     440.25 |     568.58 |         264.32 |             238.52 |      -9.76 |

Source: DGCI&S, Figures are provisional and as per latest data available.

(d) & (e) The Department of Commerce has been regularly monitoring and sensitizing line Ministries/Departments and other stakeholders from time to time and at various levels on the issue of imports on the following broad strategy: (i) Addressing domestic supply rigidities and looking at domestic production opportunities /enhancement of capacity; (ii) Timely use of  trade  remedy  options;  (iii)  Quality  Controls;  (iv)  Enforcing  rules  of  origin;  (v)  Tariff measures /inverted duty correction; and vi) Import monitoring.

(f) Several  steps  have  been  taken  by  the  Government  to  boost  exports  and  reducing dependence  on  imports  keeping  in  view  India's  increased  integration  in  the  global  value chain. Some of the measures includes, easing trade processes through digital platforms, and negotiating free trade agreements (FTAs) with various countries and blocs to enhance market access  for  Indian  products.  Regular  monitoring  of  export  performance  with  Commercial Missions abroad, Export Promotion Councils, Commodity Boards/ Authorities and Industry Associations  is  being  done  and  corrective  measures  are  being  taken  from  time  to  time. Further, New Foreign Trade Policy has been launched on 31st March, 2023 and came in to effect  from  1 st April,  2023.  The  policy  lays  down  a  blue  print  to  integrate  India  with  the global market and make it a reliable and trusted trade partner. It will further improve India's trade performance and competitiveness.

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