Stating that tariffs aren't considered a source of revenue anywhere in the government, Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Rajesh Kumar Singh said they are used as a policy tool for sectors to deliver quality and provide a minimal level of protection to the local industry, ensuring it doesn't face cost disability.
Describing revenue as mostly a side benefit or outcome of tariffs, he said duties are meant to ensure that the domestic industry develops and is protected from predatory pricing.
Singh told CNBC-TV18 that the Department of Revenue also sees tariffs as a policy tool, though the calibration of their use may vary from moderate to aggressive, depending on the need of the moment.
However, he made it clear that the basic customs duty (BCD) on several imported products will eventually have to come down, as the government can't continue with the "infant industry" argument forever.
Toy industry
Addressing the media in New Delhi on the achievements of the domestic toy industry, he cited reports predicting a compound annual growth rate (CAGR) of 12% until 2030 for the toy sector.
While the government is conducting third party assessments on the performance of the toy sector, Singh said the proposal for a production linked incentive (PLI) scheme for the toy sector is yet to receive a green signal, as the government is focusing on a good offtake from the 14 existing PLI schemes.
(Edited by : Shoma Bhattacharjee)
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