MOCI identifies products for import substitution

The Ministry of Commerce & Industry has come out with a list of as many as 102 products whose imports are high and are rising constantly. These include coking coal, certain machinery, some chemicals, and digital cameras. The idea is for different ministries to look at ways for enhancing their domestic capacity & import substitution.

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According to analysts, the cumulative share of these 102 items is 57.66% in total import during the March-August 2021 period. It has also been found that 18 of these products have both high share and high import growth rates. Gold, crude palm oil, integrated circuits, personal computers, urea, stainless steel scrap, refined copper, cameras, machines for transmission of voices and images, sunflower seed oil, and phosphoric acid are among them. These are ideal for import substitution.

“These goods have domestic production opportunities,” an official stated. “As the data has indicated that these items have been demanded consistently for import in all periods, it is supply rigidities in the domestic economy that need to be corrected,” he added. India’s merchandise imports in April-October 2021 amounted to US$ 331.29 billion, an increase of 78.71% over US$ 185.38 billion in April-October 2020 and US$ 286.07 billion in April-October 2019.