In a recent statement, the DPIIT accentuated that "India will have to eventually move to a lower customs duty regime and can't continue to protect domestic manufacturers by citing infant industry argument"
Rajesh Singh, secretary of department for promotion of industry and trad(DPIIT), put up that tariffs are not really considered a revenue source.
In view of the DPIIT, there are various possibilities of using tariffs in a unique and creative manner to protect certain industries, especially when they are subject to predatory pricing or dumping from other countries. Additionally, the secretary added "While there is an urgent need to protect vulnerable sectors, it is imperative to eradicate high tariff walls in segments which are performing well"
He accentuated, "I think over time, we will have to shift to a lower tariff regime comprehensively, The BCD(basic customs duty) will have to begin coming down, further stating that "We cannot continue with the infant industry argument forever"
These remarks have come to the fore, as experts have stressed upon the fact that India must cut down its import duties to integrate with global value supply chains.
Shedding light upon the Toy industry, the secretary said "With the help of measures like high custom duties and quality control orders, the sector is performing well", he further added that domestic toy industry is flourishing, exports are increasing and imports are coming down.
Anonymously, without pointing out China, Rajesh Singh highlighted how countries use predatory pricing to dump goods and destroy local manufacturing.
Additionally, duties on tariffs are already looming, boasting 70% as compared to the early 20%.. When this concern was raised that if the government is looking to cut these taxes, he said it will depend on the sector's performance going forward.
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