Government serious on reducing the trade deficit. The Union Government constituted a high-level task force under Chairmanship of Cabinet Secretary PK Sinha to identify various items
and policy interventions to reduce dependence on imports.
- It will suggest ways to cut import of those items which can be manufactured or explored in the country.
- The task force includes secretaries from Departments of Commerce, Industrial Policy and Promotion (DIPP), Revenue, Skill Development, Defence Production, Petroleum, Steel, Electronics and Telecommunications.
Why is this move significant?
- The move holds significance as India is heavily dependent on imports of several items such as oil, machinery, electronic hardware, pharmaceuticals ingredients including (active pharmaceuticals ingredients), gold and chemicals.
- On an average, India’s imports stand at around US $450 billion per year. In financial year 2017-18, the inbound shipments grew about 20% to US $460 billion.
- India’s oil imports during same fiscal had risen by 25.47% to US $109.11 billion.
- Though increase in imports of intermediates and raw materials reflects boost in economic activities, but the inbound shipments of final goods impact domestic manufacturers.
- Earlier, concerns were raised over high dependence on pharmaceutical ingredients or APIs from China by trade experts. At present, over 60 per cent of APIs are imported from China.
