India Open for Foreign Producers


© Sebastian Dominic

The Government of India removed quantitative restrictions on 715 items, effectively dismantling the restrictive trade regime and paving way for free imports to the country. Official sources claimed that adequate safeguards were already in place to save the domestic producers from dumping by international majors. The government is setting up a Standing Group for tracking, collating and analysing data on 300 sensitive items which are of importance to the public.

"The removal of quantitative restrictions (QRs) does not mean throwing the gates wide open. As a Sovereign Nation we are obliged to ensure safety and security of our citizens and safeguard our bio-security concerns as long as we ensure national treatment," said Shri Murasoli Maran, Commerce & Industry Minister, while announcing the Exim Policy 2001-2002. The imports of items like wheat, rice, maize, petrol, diesel, ATF and urea will be permitted only through the designated State Trading Enterprises.

Import of all primary products of plant and animal origin will be subject to import permits, to be issued by the Ministry of Agriculture after an import risk analysis based on Sanitary and Phyto-sanitary measures and provisions. In addition, conditions are being prescribed for the import of new and second-hand cars for ensuring road safety. Import of foreign liquor, processed food products and tea wastes are being made subject to already existing domestic regulations concerning health and hygiene.

Foreign items which can reach Indian market soon are mutton, butter, fresh grapes, tea black and green, coffee (not roasted), coffee or tea makers, basmati rice, sparkling wine, beer made from malt, sherry and other white wines in containers holding 2 litre or less, whisky, rum and tafia, gin, envelopes, plastic moulded briefcases, greeting cards, woven fabrics of cotton, artificial filament, synthetic staple fibre, textile wall coverings, men's or boys' jackets, ties, bowties, girls' suits of cotton, synthetic fibre, leather footwear of plastic and synthetic soles, pressure cookers of aluminium alloys, toasters, radio broadcast receivers, cassette players, colour televisions, garden tractors, mopeds, motorised cycles, other cycles not motorised, alarm clocks, lifeboats, toys of metal and plastic, toothbrushes, toy guns, ballpoint pens, fountain pens, combs, and hair slides.

Curbs like adjustment of tariffs and imposition of anti-dumping duties will be imposed in case of unfair trade practices by foreign players. Import of items like wheat, rice, maize, petrol, diesel, aviation turbine fuel (ATF) and urea will be permitted only through the designated State Trading enterprises, which will be functioning on commercial norms.

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