Inter-ministerial group to monitor possible import surge

PTI New Delhi

The government has set up an inter-ministerial group to monitor a possible surge in imports from countries like China, Vietnam and Thailand, fearing a surge in inbound shipments following the imposition of high reciprocal tariffs by the US on these countries, sources said. The product categories that may see an upsurge in diversion of imports from the US to India include consumer goods, electronics, chemicals and steel.

The clear signals for these rises in imports are likely to manifest from June to July, they said, adding the "import monitoring group" will include officials from the departments of commerce, revenue and the Department for Promotion of Industry and Internal Trade (DPIIT). The concerned line ministries and industry associations have also been asked to provide inputs on the surge in imports and its impact on the domestic industry.

"The idea is to observe these imports and see if any measures need to be taken. It will look at all the data points closely, including shipments coming from air and sea routes. While intense watch is required, volatility in imports is normal," the sources added.

As sweeping tariffs have been imposed on India's competitors including China, Thailand, Vietnam and Malaysia, their goods become expensive in the US market and this would lead to diversion of goods into countries like India after some months.