Current Affairs

Government Sets up Task Force on Ways to Reduce Import

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 
 Government Sets up Task Force on Ways to Reduce Import

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.
Government Sets up Task Force on Ways to Reduce Import Government Sets up Task Force on Ways to Reduce Import Reviewed by Shweta Kashyap on July 16, 2018 Rating: 5

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