BackNeed to increase import duty on products to support MSMEs, says Gadkari
Gadkari also urged industries to work on a strategy to increase export and reduce dependence on imports
PremiumThere is a need to increase import duty on some products to support small manufacturers in the country, micro small and medium enterprises (MSME), encourage self reliance and local production, Union minister Nitin Gadkari said on Saturday.
The minister did not specify the type of products.
“India needs to manufacture more (to increase volume) and this will result in lower prices. An increase in import duty will encourage Indian manufacturers. When the production is in bulk, the cost will be competitive," Gadkari said at a virtual summit organized by Confederation of Indian Industries (CII).
In the last few months, the government hiked import duty on items such as bamboo used in making agarbatti from 10% to 25% to encourage use of domestic bamboo and to support growers. The minister said that the move will give jobs to 25-30 lakh people.
Gadkari also urged industries to work on a strategy to increase export and reduce dependence on imports. For this, there has to be a sector-specific approach to identify sectors where exports can be increased.
“MSME needs to get a market here in India. For that dependence on imports (from China) have to be reduced….We also need to upgrade technology, make our ports, rail and roads more efficient and reduce logistics cost," he said. The minister also urged the industry to look at ways to get low cost foreign funds for MSMEs.
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