India Imports

Indian Import Policy Import is the antonym of export. In the terms of economics, import is any commodity brought into one country from another country in a legal way. The economic needs of the country, effective use of foreign currency are the basic factors which influence India's import policy. There are mainly 3 basic objectives of the Indian import policy :

y y y

To make the goods easily available. To simplify importing license. To promote efficient import substitution.

Current Scenario of Imports in India There are few goods which cannot be imported namely tallow fat, animal rennet, wild animals, unprocessed ivory etc. Most of the restrictions are on the ground of security, health, environment protection etc. Imports are allowed free of duty for export production. Input output norms have been specified for more than 4200 items. The norms tell about the amount of duty free import of inputs allowed for specified products. There are no restrictions on imports of capital goods. Import of second hand capital goods whose minimum residual life is of five years is permitted. Export Promotion Capital Goods (EPCG) scheme provides exporters to import capital goods at a concessionary custom rates. In the past 30 years Indian imports have risen quite dramatically. At present imports accounts for 17% of the GDP. Capital goods have been continued to be imported and in the last three years, their share has fallen from 25% to 22%. Major Indian Imports There are facilities available for the service industries to enjoy the facility of zero import duty under EPCG scheme. Some of the major imports of India are edible oil, newsprint, petroleum and crude products, crude rubber, fabrics, electronic goods etc. Problems due to Large Import of Products The recent trend of imports is of some concern. The regular imports of oil reflect upon the fact that India is not able to produce the quantity of oil required in India. Moreover the increase in the imports of products also highlights the fact that the Indian domestic industries need to be developed. High cost of imports also put pressure on the foreign exchange reserves.

The basic customs tariff rate now ranges from 0 to 40% plus additional duty of 2%. to simplify and streamline procedures for import licensing. Software units can use data communication network to export their products. There is an Export Promotion Capital Goods (EPCG) Scheme under which exporters are allowed to import capital goods (including computer systems) at concessionary customs duty. hospitals. the average tariff levels prevalent in the ASEAN region. which are home-based or villagebased and which require low skills and employ a large number of people. but most of the restrictions are on grounds of security. . There are only 4 prohibited goods: tallow fat. subject to fulfillment of specified export obligations. effective use of foreign exchange and industrial as well as consumer requirements are the basic factors which influence India's import policy. There are no quantitative restrictions on imports of capital goods and intermediates. through a series of progressive steps. air cargo. the average rate is about 30%. There is a restricted list. to make necessary imported goods more easily available. But the policy of restricting import of consumer goods is changing. wild animals and unprocessed ivory.The economic needs of the country. Likewise. These norms specify the amount of duty-free import of inputs allowed for specified products to be exported. Import of second-hand capital goods is permitted provided they have a minimum residual life of 5 years. animal rennet. On the import side the policy has three objectives: 1. hotels and other tourism-related industries. Input-output norms have been specified for more than 4200 items. Service industries enjoy the facility of zero import duty under the EPCG Scheme. 2. including essential capital goods for modernizing and upgrading technology. 3. to promote efficient import substitution and self-reliance. The Indian government's clearly laid down policy is to achieve. health and environmental protection or because the goods are reserved for production by small and tiny enterprises. Imports are allowed free of duty for export production under a duty exemption scheme.

Sign up to vote on this title
UsefulNot useful