Reducing dependence on China: India Inc advise on import substitution

New Delhi: Indian companies have started submitting proposals to the government on ways to reduce import dependence on China, recommending measures such as levy of Covid-19 import duties on non-essential products and reduction of customs duty on plant and machinery from other countries.

“The suggestions include imposing Covid-19 import duties of as much as 15% on non-essential imports across sectors, even for products routed through countries that have free-trade agreements with India,” a senior official told ET. “They also suggested suspension of trade concessions under FTAs, reducing customs duty on plant and machinery imported from Japan, the US and Europe, and making import of raw material very selective.”

Industry associations are making presentations to the government on the basis of inputs received from sectoral bodies.