Industr

‘$186 bn import substitution possible’

Promoting self-reliance in sectors such as electronics and defence equipment, among others, can lead to import substitution of over $186 billion for India , says a study by Export and Import Bank of India (Exim Bank).

Other sectors identified for import substitution and enhancing domestic production include machinery, chemicals and allied sectors, and select agricultural products, according to the study titled ‘Self-Reliant India: Approach and Strategic Sectors to Focus.’

Deficit with China

The study has also included sectors such as auto components, and iron and steel where, though there is overall trade surplus for the country, but in some sub-categories, there is trade deficit, particularly with China.

“These sectors account for more than $186 billion of imports by India, with a share of nearly 39% in overall imports and 50% in the non-oil imports by India,” the study showed.

The study recommended several sector-specific strategies for reducing import dependence by enhancing domestic production, based on an assessment of the specific needs and issues faced by each of the sectors.

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Printable version | Sep 16, 2020 10:53:10 PM | https://www.thehindu.com/business/Industry/186-bn-import-substitution-possible/article32623598.ece

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