The steps taken to curb these imports include progressively increasing the percentage of blending in auto fuels to make a dent in the biggest item of imports – petroleum crude. In other sectors, procedural restrictions, closer monitoring of incoming shipments, prescribing quality standards and creating space for domestic manufacturing have been tried.

 

The sectors which were targeted for reducing import dependence were petroleum, gold, tyres, televisions and other electronics, pharma raw materials, edible oils and other areas for which production linked incentive schemes are functioning.

 

The progress of the initiative is reviewed at the regular intervals through inter-ministerial discussions which are led by Commerce and Industry Minister Piyush Goyal. “Other ministries have also been involved in the effort and monitoring. Earlier this was considered the sole responsibility of the commerce department,” the official said.

 

The commerce and industry ministry is sensitising other ministries to see areas where we have competitiveness and where we can increase our manufacturing and cut import of those goods, the official added.

 

The sensitisation initiative is yielding positive results as information flow among different ministries and departments has started.

 

The information flow is helping in analysing data and framing specific policy interventions like PLI, the official said.

 

From a mere 1.53% in 2013-14, the ethanol blending has touched 11.77% in FY 23. Target is to get to 20% by 2025 as against 2030 earlier. In the just concluded sugar year 413.47 crore litres of ethanol have been provided to oil marketing companies for blending as against 408 crore litres in the previous year and 38 crore litres in 2013-14. Last year imports of petroleum crude and products were $209.4 billion.

 

The first batch of the PLI scheme was launched for the pharma sector and Active Pharmaceutical Ingredients (API). According to an analysis by the Ministry of Commerce and Industry, imports of pharma products rose from $6.5 billion in 2019-20 to $9.1 billion in FY22 but in 2022-23 imports were down to $8.1 billion. During that period pharma exports have gone up from $20.7 billion in FY 20 to $25 .4 billion last year.

 

In July 2020 television imports were put in the restricted category which means prior licensing was required for imports. This resulted in imports coming down to $ 39 million in FY 23 from $ 781 million in 2019-20. In June 2020 imports of pneumatic tyres were also put on a restricted list that brought down imports to $36 million till July of 2023 from $285 million in 2019.

 

Imports of edible oil came down in value due to lower prices in the international market but the country’s import dependence on the commodity remains at 56%.

 

The PLI for LED and White Goods (Air Conditioners and LED Lights) started in 2021 has resulted in a 10% decline of 10% in imports on year of compressors to $177 million in April-August of this year. After PLI share of imported mobile phones, though not in non-essential category, in total domestic consumption in value terms is down to less than 5% from 78% in FY15.

 

Imports of wallpaper reduced by 77 per cent to $10 million during April-August this year from $44 million in the same month last year due to the launch of paper import monitoring system (PIMS).

 

Under PIMS an importer has to provide advance information online about import of these papers and obtain a registration number. The government has a similar system for coal and steel imports.