The Big Picture – Non-essential imports: How can they be substituted?
- October 29, 2014
- Posted by: INSIGHTS
- Category: RAJYA SABHA VIDEOS
- ‘Make In India’ is now accompanied by plans to cut imports.
- Some key ministries have been asked by the PM to discourage and cut unessential imports and instead manufacture them within the country.
- Apart from helping to build a better manufacturing base and creating new employment, this move is also aimed to decrease the trade gap.
- India has got large untapped potential.
- A strong bureaucracy is needed for the task of selective targeting.
- At this point of time our imports are becoming reasonable due to fall in crude oil prices and fertilizers.
- Three important sectors where the imports need to be cut down are: Coal sector, Electronics and Hardware sector and Military Hardware.
- Negative Balance of Trade is not always a bad thing. It is because in a developing country like India when there is a deficit, it indicates that we are adding to domestic savings and tapping foreign investments.
- Unessential imports include Gold and Jewellery imports.
- Gold Imports have increased because of increase in the investment demands for gold along with normal demand.
- Prolonged deficits are not good for economy.
- Competitive advantage in manufacturing sector is often created by the government.
- There are provisions in WTO which allow for some kind of protection.
- To make sure that India remains competitive, more wings of the government need to act together.
- In the last 5 years exports have almost doubled.
- India is a part of liberal Trading order.