Global Tyre Giants Pledge Over Rs 1,100 Crore After DPIIT's Import Relaxation

(MENAFN- KNN India) New Delhi, Jul 19 (KNN) In a significant development for India's manufacturing sector, leading global tyre manufacturers have committed investments exceeding Rs 1,100 crore following a temporary relaxation of import restrictions by the Department for Promotion of industry and Internal Trade (DPIIT).

According to a government official, companies such as Bridgestone, Michelin, and Goodyear have pledged substantial investments to expand their tyre manufacturing capabilities in India.

This move comes after the DPIIT allowed these firms to import specific tyres from their overseas factories into the country.

The import relaxation was granted on the condition that these companies would establish or expand their manufacturing facilities in India within a specified timeframe.

The initiative aims to boost domestic production while leveraging global expertise.

The DPIIT is currently evaluating additional applications from other international players under this scheme.

Concurrently, the department has urged other ministries to implement similar measures to promote domestic manufacturing in their respective sectors, citing successful examples from the toy and tyre industries.

Potential policy instruments suggested by the DPIIT include adjustments to customs duty rates, implementation of non-tariff measures such as Quality Control Orders (QCOs), and incentives for developing the manufacturing ecosystem.

The department's approach draws inspiration from its successful initiatives in the toy sector, where focused measures led to a 227 per cent increase in India's toy exports and a 37 per cent decrease in imports over the past decade.

These efforts have also significantly improved toy quality, with 84 per cent of toys now conforming to quality standards in 2023, compared to 33 per cent in 2019.

As India continues to strengthen its manufacturing capabilities, these strategic policy interventions are expected to attract further investments and enhance the country's position in global supply chains.

(KNN Bureau)

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