The commerce and industry ministry has also asked import-dependent industry sectors to diversify their import sourcing away from a few countries to maintain supply chain resilience.
These issues were discussed in a meeting that the ministry had with importers of components of electronics, oil, mobile phones and automobiles such as Apple, Foxconn, Tata Steel, RIL, Dell, Hyundai and Lenovo last week, where it also emphasised on manufacturing high quality products in the country.
“Suggestions were taken on indigenisation of components and the companies said they will come back with a timeframe and roadmap for the same,” said an official.
As per the official, the companies were asked to reduce their import dependence and improve domestic manufacturing in line with ‘Make in India‘ and ‘Aatmanirbhar Bharat‘ initiatives.
Petroleum and electronic goods alone accounted for 49% of India’s imports in the nine months to December 2022.
“Even where domestic production is available, companies prefer to import for a minor price difference. While we don’t want to restrict imports, locally manufactured products should be preferred over imports,” said another official.
Email queries sent to Apple, Dell, Hyundai and Lenovo didn’t elicit a response.
The meeting assumes significance in the wake of India’s merchandise trade deficit widening to $218.94 billion in April-December 2022 from $136.46 billion a year ago.
“It seems the government is trying to see exports and imports from the same lens as import restrictions hurt India’s exports too,” said a company representative who attended the meeting.
As per the representative, reducing imports from China and sourcing from alternative countries even at a higher cost besides revving up domestic production were discussed.