India will impose restrictions on the import of certain pneumatic tyres such as those used in motorised station wagons, racing cars, scooters, multi-cellular polyurethane tubeless tyres, and bicycles, in an attempt to promote domestic manufacturing. It will also placate domestic tyre manufacturers who have long been demanding restrictions on imports, including imports of tyres from countries like China.
According to the Directorate General of Foreign Trade (DGFT), the import policy of new pneumatic tyres – amended from free to restricted – will require a licence or permission from the DGFT prior to imports. Earlier, the import of these tyres was allowed without any restrictions. DGFT’s move is hoped to promote domestic manufacturing and reduce import bill of non-essential goods, simultaneously.
India’s imports dipped by roughly 10% to US$ 467 billion in 2019-2020; imports of pneumatic tyres were worth US$ 260.72 million in April-February 2019-20, against US$ 330.72 million in 2018-19.