Government Imposes Restriction On Tyre Imports
Published On 2020-06-15 14:47:36 436 views
The decision was taken because of the growing demand from domestic tyre manufacturers to put a restriction on tyre imports.
The Directorate General of Foreign Trade (DGFT) has issued a notification imposing curbs on imports of certain new pneumatic tyres used in motor cars, busses, lorries and motorcycles in a move to promote domestic manufacturing.
This implies that now an importer would require a license or permission from DGFT for imports. Earlier, the import of these tyres were allowed without any restrictions.
“Import policy of new pneumatic tyres…is amended from free to restricted,” the Directorate General of Foreign Trade (DGFT) said in a notification.
In calendar year 2019-20, India imported tyres worth USD 260.72 million as against USD 330.72 million in 2018-19.
The decision was taken because of the growing demand from domestic tyre manufacturers to put a restriction on tyre imports. Tyre industry has in the past raised concerns over rising imports from countries like China.
The government has restricted imports of tyres used for cars, buses, lorries and motorcycles, including radial and tubeless, in a move aimed at curbing imports and boosting domestic companies.
The government is taking steps to promote domestic manufacturing and reduce import bill of non-essential goods. The country’s imports dipped by about 10 per cent to USD 467 billion in 2019-20.