Gold, natural gas, crude palm oil, integrated circuits, personal computer, insulin injection, cameras, urea, antibiotics, turbo-jets, lithium-ion accumulators, refined copper, machines and mechanical appliances, are among 102 priority items that the government has identified whose imports are high and need immediate interventions for domestic production opportunities. These comprise 57.66% of India’s total imports.
In an analysis of India’s imports, the commerce department said that of the 102 products, emphasis may be given to 18 items which have been consistently growing and have a significant share consistently across the long, medium and short terms.
“As the data indicates these items have been demanded consistently for import in all periods and supply rigidities for these items in the domestic economy needs to be corrected,” the commerce department said in an analysis of import items for domestic production opportunity.
The study, done on HS codes at 8-digit (tariff lines), analyses items which have an average import value of $500 million for March-August 2021 (short run) and $1 billion per year across three years (FY19-FY21) and ten years (FY12-FY21).
“Industry associations, manufacturers and business leaders may consider exploring domestic capacity expansion in these items with a view to meet the unmet domestic demand which in turn will fuel economic growth and create employment opportunities,” the department said in the report.
In FY22, India’s imports were a record $611.89 billion.
The ministry has also identified 88 items with high growth potential. These include gold, natural gas, crude palm oil, integrated circuits, parts of telephonic/telegraphic apparatus and personal computer.
The long-run analysis (2011-12 to 2020-21) showed that 274 items have exhibited a surge in growth in the long run. Major items are non-industrial diamonds, steam coal, natural gas, coking coal, parts of telephonic/telegraphic apparatus, crude palm oil, aeroplanes, personal computer, urea, crude soya-bean oil, monolithic integrated circuits, solar /photovoltaic cells, aluminium scrap, sunflower seed oil, turbo-jets and cashew nuts.
Maximum number of products-18- have been identified for the Department of Chemicals and Petrochemicals, 15 for the Department for Promotion of Industry and Internal Trade, 13 for Ministry of Electronics and IT, and nine each for heavy industries and mines ministry.
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