India: KSAA Insights – Initiatives Towards "Atmanirbhar Programme"

1. Recently, Prime Minister Shri. Modiji had announced the "Atmanirbhar programme" which aims to create enough local production to meet local demand. The invention of such scheme was understood during such pandemic wherein, majority of our local demand was depended upon foreign markets and due to lockdown across the globe acute shortage was created. In the past, the India economy was open for import of goods from foreign country subject to restrictions imposed and levy of import duties at the time of import of goods in India. In International trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in the domestic market. The Government in order to boost the domestic players & make India self-sufficient so that no such hoarding happens had decided to impose Anti-Dumping Duty on several commodities in the coming future.
2. The synopsis of various notifications issued by Central Government post lockdown by way of imposition of Anti-dumping duties is explained as under:

3. Imposition of Anti-Dumping Duty provisions inflates the landing cost of material, thereby discouraging imports. This is an attempt made by the Government of India towards "Atmanirbhar Program" announced by the Prime Minister of India. The same would lead to a shift of procurement channel thereby leading to an increase in local manufacturing process. Accordingly, large scale manufacturing opportunities would be created and the MSME programme and benefits introduced by the Government is in synchronisation with the idea of the plan announced by the Prime Minister of India. Some of the highlights of the changes are explained as under:
   • Electronic Segment: One of the major backbone of any economy is innovation. Technological innovation & Digitalisation is the future in which India has a better edge. Apple Inc, Dell Inc, Casio, General Electronic are some of the leading examples in the said space. India is equally competitive and Indian Companies can become global brand as we have the required resources which can satisfy local demand. Accordingly, electronic calculators sold in India are mostly imported from Thailand, China, Malaysia or Vietnam. The domestic manufacturing was not explored and the demand was met through imported goods. To boost the local market, it was necessary to impose Anti-Dumping duty. The effects may not be that immediate as alternate routes for imports may be explored but one can understand that steps have been taken towards boosting domestic production and due to such continuous efforts domestic manufacturing will gradually rise. Further, even Micromax Informatics Limited have announced launch of smartphones.
   • Steel Segment: Currently, China is a leading manufacturer of Steel in the world thereby accounting nearly 50% of the world production. The Chinese companies are getting high subsidies from the State Government. They are dumping the steel in each country. Most of the countries like India, who have their own steel Industry, have imposed Anti-Dumping Duty. India has imposed Anti-Dumping duty on procurement from not only China PR but also Vietnam and Republic of Korea. Soon after the announcement of anti-dumping duty a statement was given by Mr. Sajjan Jindal, CMD JSW Group of Companies that "Going forward, India should be the steel producer of the world, not China."
4. Many of the above restrictions are specifically for the goods imported from China PR and it coming at the time of the raging border dispute shall have a sentimental impact on the Indian market. Accordingly, we expect more such developments in future thereby gradually shifting the economic model and creation of tremendous opportunities for small and medium segment population leading to achievement the dream of "Atmanirbhar Program".

Thank you for patient reading.

Footnotes

1 For Details refer Notifications from 08/2020 -Customs (ADD) to 18/2020-Customs (ADD)

2 Produced by Jiangsu Guoxin Union Energy Co. Ltd

3 Produced by Ningbo Deli Electronic Development Co., Ltd.

4 Produced by Thai Acrylic Fibre Company Ltd., Thailand

5 Produced by M/s Shell Eastern Petroleum (Pte) Ltd

6 Produced by Jiangsu Haiyang Chemical Fibres Co. Ltd.

7 Produced by Dongkuk Steel Mill Co. Ltd

8 Produced by POSCO/POSCO Coated & Color Steel Co Ltd

9 Produced by Dongbu Steel Co Ltd

10 Produced by Ton Dong A Corporation

11 Produced by Hoa Sen Group

12 Produced by Tay Nam Steel Manufacturing & Trading Co., Ltd

13 Produced by Zhejiang Huada New Materials Co., Ltd

Originally published 20 July, 2020

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