Business

Indian Govt may ban import of Second Hand Machinery older than five years

The government might soon restrict import of second hand plant and machinery which is aimed at providing growth opportunity to the domestic capital goods and engineering industry as well as safeguarding the quality, productivity and competitiveness of Indian manufacturers. Based on the information available, a panel headed by cabinet secretary AK Seth is considering the ban import of machinery more than five years old. The data indicates that Indian manufacturing sector imports large number of used machines that come at a throwaway price and the share of such machines are as high as 80% in specific sectors like textile weaving. The import of used machinery is also found responsible for shrunk in the domestic capital goods manufacturing industry.

Earlier in April, the commerce and industry ministry withdrew a facility that allowed domestic firms companies to issue equity to overseas firms against import of second-hand goods, is now expected to ban such imports under subsidy schemes such as the Textile Up-gradation Fund and the Credit-Linked Capital Subsidy Scheme.