The editorial, “Importing worries” (December 20), aptly reflects that the move cannot be in the long-term interest. It is a desperate quick move to create demand for locally manufactured electronic goods, which will be viewed by global markets as a protective measure to favour the domestic industry. Instead, it is necessary to look at granular reasons for such imports made due to lack of availability of quality products at competitive prices. It is better to do a root cause analysis for pursuing import substitution instead of putting a spanner of enhancing customs duty. It is better to make the industry export-oriented. The recent improvement in the “ease of doing business” index reflects some signs of simplification and industry-friendliness.
The ongoing “Make in India” campaign should start showing results. The improved policy support should be able to strengthen industry ecosystem. Then the entrepreneurs should be able to compete with foreign markets both in terms of price and quality. No doubt, it is a painful process to nurture domestic industry compatible to overseas markets, yet it is the most desired and durable option.The importers should be allowed to have freedom to access domestic or international markets at their choice instead of forcing cost hike of imports. In this context, the recent measures in the mid-term review of foreign trade policy should be able to help producers in due course to gear up to compete, but monitoring end use of policy measures is essential. More than announcing policies, making the relief reach the target group will be important to eventually avoid the current form of self-inflicting curbs.
K Srinivasa Rao, Noida Letters can be mailed, faxed or e-mailed to: The Editor, Business Standard Nehru House, 4 Bahadur Shah Zafar Marg New Delhi 110 002 Fax: (011) 23720201 · E-mail: firstname.lastname@example.org All letters must have a postal address and telephone number