The government is closely monitoring imports of non-essential products with a view to enhancing domestic production of those items, a senior official of the commerce ministry said on Friday.
Containing these imports would also help reduce the trade deficit, which has reached $198.35 billion during April-November 2022 as against $115.39 billion in April-November 2021.
While talking to reporters, an additional secretary in the commerce ministry L Satya Srinivas said Indian trade needs to be seen in the global context.
"Indian exports are showing great resilience despite challenges", he said. "India is still a bright spot." After recording a decline of 16.65 percent in October, the country's exports recorded a flat growth of 0.59 percent to $31.99 billion in November.
There is a base effect also as last year the exports were the highest ever, it was an exceptional year, Srinivas explained.
Another official said the ministry sends information of import surge on monthly basis to all line ministries and departments. The line ministries would nominate nodal officers to coordinate with the department of commerce on the issue.
The strategy, he said, is to address domestic supply rigidities by enhancing local capacities and production opportunities for those items.
"Global growth and trade prospects continue to be gloomy with headwinds resulting in weak global demand, therefore the slowdown in exports growth while India's domestic demand continues to be robust with the continuing growth of imports.
"There will be pressure on the trade deficit. The government is closely monitoring imports -- especially non-essential imports," the official said.
Imports rose by 29.5 percent to $493.61 billion during April-November this fiscal. It was $381.17 billion in the year-ago period, as per the ministry's data.
When asked if there would be an impact of a price cap on Russian oil, the official said: "Not much." On the second phase of talks for a comprehensive free trade agreement with Australia, the official said the chief negotiators would meet to finalise the scoping document and the negotiations are likely to be launched during the joint ministerial commission (JMC) meeting in January 2023.
The first phase of the agreement will be implemented on December 29.
