The Government of India on Friday imposed restraint on the import of certain new pneumatic tyres used in Cars, motorcycles, buses and trucks to promote the domestic manufacturing sectors.
The Directorate General of Foreign Trade (DGFT) stated that the import policy of new pneumatic tyres was amended from being free to restricted for the growth of the domestic manufacturing of tyres.
The restriction now forces the Importers of new pneumatic tyres to get a license or permission from the DGFT. Earlier the imports were free and were allowed without any kind of restriction.
The decision to place restriction on imports was significantly demanded by the domestic tyre manufacturers since their growth was hindered by the imports of tyres from other external markets. The industry has been raising concerns over the period of time stating that the imports of tyres from countries like China is disrupting their trade practices and growth significantly.
Also see: ATMA: Import Restriction On Rubber To Effect The Tyre Industry
The restrictions are implemented on tyres used in station wagons, scooters, bicycles and even racing cars. It was also implemented on 'Multi-cellular polyurethane tubeless tyres.
Imports of these tyres were worth USD 260.72 million in April-February 2019-20 as against USD 330.72 million in 2018-19
The government stated that they are taking every kind of measure to promote the Indian domestic market of tyre manufacturers so as to promote the domestic market in terms of sales. The government is also taking keen interest in reducing import bills on non-essential products.
According to PTI, the imports from different countries such as China has dipped by about 10 percent that is USD 467 Billion in the years 2019-20.
The Government of India has been receiving requests from a long period of time regarding the issue of losing business due to dipped sales of their domestic products that is the tyre manufactured. This dip in sales was due to the imports of tyres which were brought from countries such as China. This is said to disrupt the domestic market resulting in the Industries making lesser profits even with adequate production.
