ndustry asks Modi govt to consider import subsidies

The Confederation of Indian Industry (CII) has recommended a slew of measures to the government including subsidies to overcome the adverse impact of disruption in the supply of Chinese imports due to the novel coronavirus epidemic.

43 per cent of India's imports come from China. Since China placed a lockdown in its four provinces and 50 cities to contain the COVID-19 epidemic, supply chains of Chinese imports to India have been disrupted.

In its report on the impact of 'novel coronavirus in China', the CII has asked the government to minimise risks to key sectors arising from supply chain disruptions by encouraging domestic manufacturing. The industry has asked the Modi government also to offer a buy-back guarantee to purchase of additional production of the items once China's production and supply returns to normal.

Additionally, the government may consider offering credit with a backstop facility of guarantee for companies which have the capability to start immediate production of items that can feed into domestic consumption, the report said.

The CII asked the BJP government to remove higher customs duties imposed on certain products that may need to be sourced from other countries now. The report also recommended import subsidies for certain products under a trade deal.

The industry has also sought a one-time waiver of Non Performing Assets (NPA) regulations given the exigencies under a Force Majeure clause so that enterprises need not worry about the impact on their credit ratings.-IANS