The government informed Parliament on Wednesday that as the geopolitical conflict persists keeping global commodity prices, including crude oil prices elevated, the Current Account Deficit (CAD) of net commodity importers including India, continues to remain under stress.
The current account in the Balance of Payments changed from a surplus of 0.9%of GDP in 2020-21 to a deficit of 1.2% in 2021- 22 on the back of rising economic activity in India as the nation completed its economic recovery from the pandemic induced contraction of GDP.
The CAD was also a result of rising global commodity prices caused by disruption in supply chains the world over, initially triggered by lockdowns imposed to fight the pandemic and subsequently by the Russia-Ukraine conflict, the commerce and industry ministry said.
Minister of state for commerce and industry Som Parkash told Lok Sabha that Harley Davidson, Ford India, and General Motors (GM) have, during the past five years, ceased manufacturing of vehicles in India on account of restructuring of their business operations, business planning and decline in domestic sales.
“Exit may be related to possible operational reasons and does not in any way reflect the story of the Indian automobile sector or business environment in India,” he said. During their operations in India, the cumulative investment made by these companies is Rs 31,060 crore. India’s automotive growth story is alive and growing both in domestic and export markets, Parkash said, adding that a churn in the market is a natural outcome of healthy competition and reflects relative competitiveness of companies as well as technological evolution to electric vehicles.
Chinese product ban
Commerce and industry minister Piyush Goyal told Parliament that India has not imposed any country-specific ban on imports.
India and China, are both members of the WTO, and any trade restriction imposed must be WTO compliant,” he said in a written reply in the Lok Sabha, adding that India has not imposed any country specific ban on imports. However, as per the import policy of the government, all goods imported into India are subject to domestic laws, rules, orders, regulations, technical specifications, environment and safety norms that are notified from time to time and Government takes appropriate action including ban on goods if these are found to violate these regulations or have implications for national security.
Currently, 61 Anti-dumping measures and 4 countervailing duty measures are in force on Chinese products, he said.
The Niryat Rin Vikas Yojan (NIRVIK) is being re-examined in view of the changed market situation with the idea of coming up with an improved scheme to provide enhanced cover for small exporters within the existing Whole Turnover – Export Credit Insurance for Banks, Lok Sabha was told.
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