Centre forms group to track import surge

The government has set up an inter-ministerial group to monitor a possible surge in imports from countries such as China, Vietnam and Thailand following the imposition of high reciprocal tariffs by the US on these nations, sources said.

The product categories that might see an upsurge in diversion of imports from the US to India included consumer goods, electronics, chemicals and steel.

The clear signals for these rises in imports were likely to manifest from June to July, they said, adding the “import monitoring group” would include officials from the departments of commerce, revenue and the Department for Promotion of Industry and Internal Trade.

The ministries and industry associations concerned had also been asked to provide inputs on the surge in imports and its impact on the domestic industry.

“The idea is to observe these imports and see if any measures need to be taken. It will look at all the data points closely, including shipments coming from air and sea routes. While intense watch is required, volatility in imports is normal,” the sources added.

As sweeping tariffs had been imposed on India’s competitors, including China, Thailand, Vietnam and Malaysia, their goods had become expensive in the US market and this would lead to diversion of goods into countries such as India after some months.

The situation would also provide an opportunity to the domestic industry to procure intermediate goods at affordable rates, they said.

The government was stepping up efforts to help exporters explore new markets, said one of the sources. The commerce ministry was fast-tracking formulation of its export promotion mission to support exporters in areas such as providing credit at affordable rates; and negotiations of proposed free trade agreements with the European Union, Oman, New Zealand and the UK.

Additionally, officials concerned had been directed to hold a series of bilateral meetings with the identified 20 countries such as Australia, Brazil, China, and France for pushing India's exports.