
New Delhi: While the government aims to make India self-reliant, the country’s trade deficit continues to widen, highlighting an over-dependence on imports—even for everyday items like umbrellas and glasses. In response, authorities are now considering raising customs duties on certain products to boost domestic manufacturing.
Government Plans to Reduce Import Dependence:
According to reports, the government is preparing to take major steps in the upcoming budget to reduce import reliance. Measures under consideration include:
- Increasing customs duties on selected imported items.
- Providing incentives for local production to strengthen domestic manufacturing.
A senior official stated that India remains highly dependent on certain products from other countries, and the government wants to curb this reliance. Around 100 items have been identified for potential incentives, including engineering goods, steel products, machinery, and everyday essentials such as suitcases and flooring materials. Currently, imports on these items attract duties ranging from 7.5% to 10%.
Trade Deficit and Concerns:
Between April and November 2026, India exported goods worth $292 billion but imported $515.2 billion, causing a sharp rise in the trade deficit. This imbalance has triggered government concern, and industries have been advised to diversify their supply chains and enhance local production.
The challenge is compounded by quality and price gaps: domestically made products often cannot match the imported alternatives in quality or cost, making it hard for local manufacturers to compete.
India’s Dependence on China:
China remains India’s largest supplier for several products. For instance:
- In 2025, India imported $20.85 million worth of umbrellas, of which $17.7 million came from China.
- In 2024–25, imports of glasses and goggles totaled $114 million, nearly half sourced from China.
- Certain agricultural machinery imports from China account for up to 90% of India’s total imports in that category.
This imbalance is evident in overall trade: from April to November 2026, India exported $12.2 billion worth of goods to China but imported $84.2 billion, resulting in a $72 billion trade deficit. Notably, China’s exports surpassed $1 trillion this year, flooding global markets with Chinese goods.
Way Forward:
The government is exploring a combination of tariff hikes and incentives to promote domestic production, reduce import dependence, and address the growing trade deficit. Experts emphasize that boosting local manufacturing and improving quality will be key steps toward a truly self-reliant India.
Discover more from SD NEWS agency
Subscribe to get the latest posts sent to your email.
