The government is also considering the introduction of a credit system for such imports, with a final decision likely once domestic production in India reaches a critical threshold.
The strategy, a source said, mirrors the approach that successfully attracted investment in the tyre manufacturing sector where the government temporarily eased import restrictions on certain tyre categories, contingent on establishing local manufacturing facilities.
In 2020, the import of 'New Pneumatic Tyres' was classified under the 'restricted category'. However, in 2023, the Ministry of commerce and industry relaxed the guidelines for tyre manufacturers who committed to investing in India through "brownfield or greenfield projects for manufacturing tyres within the restricted category".
As a result, global tyre manufacturers such as Bridgestone, Michelin and Goodyear pledged investments worth over ₹1,100 crore in India.
This story is from the December 25, 2024 edition of Financial Express Chennai.
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This story is from the December 25, 2024 edition of Financial Express Chennai.
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