Lok Sabha Question No. 2824 (UNSTARRED), answered on 2026-03-10
Subject: Impact of Cheap Imports
Ministry: COMMERCE AND INDUSTRY
Asked by: Adv. Chandra Shekhar

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE

## LOK SABHA UNSTARRED QUESTION NO. 2824 ANSWERED ON 10/03/2026

## IMPACT OF CHEAP IMPORTS

## 2824.  ADV. CHANDRA SHEKHAR :

Will the Minister of COMMERCE AND INDUSTRY ¼okf.kT; ,oa m|ksx ea=h½ be pleased to state:

- (a) the protective measures made to safeguard small-scale domestic industries from the impact of cheap imports;
- (b)  whether  the  benefits  of  export  promotion  schemes  are  reaching  micro  and  smallscale industries in an equitable manner, if so, the details thereof;
- (c) whether there is a separate scheme or budgetary provision specifically intended to promote rural and cottage industries, if so, the State and district-wise details of such provisions;
- (d) whether any special financial package has been earmarked for the revival of closed industrial units; and
- (e) if so, the details thereof, State and district-wise?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT;ea=h ¼Jh ftfru izlkn½

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a) Government has been implementing several protective measures to safeguard and promote small-scale domestic industries (SSIs) through trade remedial measures. The measures  include  imposing  anti-dumping  duties  on  below-cost  imports,  safeguard duties to manage sudden surges in imports, countervailing duties to neutralize subsidies provided  by  foreign  governments,  Quality  Control  Orders  to  prevent  the  dumping  of substandard,  cheap  goods,  and  strict  enforcement  of  rules  of  origin  to  prevent  the misuse  of  FTAs  for  cheap  imports.  Monitoring  of  imports  is  also  conducted  through import licensing/registration mechanisms in sensitive sectors wherever required.

(b)  to  (e)  The  Directorate  General  of  Foreign  Trade  (DGFT)  administers  several  key export  promotion  schemes,  i.e.  Export  Promotion  Capital  Goods  Scheme  (EPCG), Advance  Authorisation  (AA),  Duty  Free  Import  Authorisation  (DFIA),  Remission  of Duties  &  Taxes  on  Exported  Products  (RoDTEP)  that  are  uniformly  available  to stakeholders,  including  micro  and  small-scale  industries,  across  all  States  and  Union Territories of India.

These schemes are accessible to exporters, manufacturers, merchant exporters, and other  eligible  stakeholders  across  States/Union  Territories,  ensuring  equitable  policy implementation and equal opportunities for trade throughout the country.

Union Cabinet has approved the Export Promotion Mission (EPM) on 12th November 2025 with the objective of strengthening India's export competitiveness and providing targeted support to exporters in global markets, with a particular focus on Micro, Small and Medium Enterprises (MSMEs) across the country.

The Export Promotion Mission is structured around two integrated sub-schemes:

-  Niryat Protsahan: focuses on improving access  to trade finance through instruments such as interest subvention, export factoring, collateral guarantee for export credit, credit for e-commerce exporters, and credit enhancement support for export diversification; and
-  Niryat  Disha:  focuses  on  other  trade  enablers  such  as  export  quality  and compliance  support, international branding and  packaging, market  access initiatives, export logistics & warehousing, inland transportation support and trade intelligence.

Further, initiatives for exporters' capacity building, such as the Niryat Bandhu Scheme and  the  development  of  Districts  as  Export  Hubs,  are  also  implemented  across States/UTs.

Government  of  India  has  also initiated multiple measures  specifically aimed  at promoting  rural  and  cottage  industries,  primarily  managed  by  the  Ministry  of  Micro, Small and Medium  Enterprises (MSME)  and  the Khadi and Village Industries Commission (KVIC).

The measures include:

-  Prime Minister's Employment Generation Programme (PMEGP): A major creditlinked subsidy scheme for setting up new micro-enterprises in rural (and urban) areas. It offers higher subsidies (up to 35% in rural areas) for special categories.
-  Scheme of Fund for Regeneration of Traditional Industries (SFURTI): Organizes traditional  artisans  into  clusters  to  make  them  more  competitive,  providing support for technology, training, and raw materials.
-  A  Scheme  for  Promoting  Innovation,  Rural  Industry  and  Entrepreneurship (ASPIRE): Focuses on creating an ecosystem for startups in the agro-industry, establishing  Technology  Business  Incubators  (TBIs)  and  Livelihood  Business Incubators (LBIs).

-  Gramodyog  Vikas  Yojana  (GVY):  Aims  to  revive  traditional  rural  industries through skill development and distribution of modern tools.
-  Coir Vikas Yojana (CVY) & Mahila Coir Yojana: Focuses on the development of the coir industry, with a specific sub-scheme for providing motorised equipment to rural women artisans.
-  Mahatma Gandhi  Gram  Swaraj  Initiative  (2026):  Launched  to  focus  on  global market linkage, branding, and modernization of khadi, handloom, and handicrafts.
-  One District One Product (ODOP) initiative for the promotion of district-specific products, including rural and cottage industries.

The revival of closed industrial units is primarily undertaken through financial restructuring, revival packages, and support measures  implemented  by various Ministries,  financial  institutions,  and  State  Governments. Support mechanisms include assistance  under  MSME  support  programmes  of  the  Ministry  of  MSME,  financial restructuring mechanisms for stressed units through banks and financial institutions.

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