India has imposed restrictions on imports of tyres used in two-wheelers, cars, heavy vehicles and trucks, according to a notification released by the Directorate General of Foreign Trade (DGFT), Government of India.
The move is aimed at boosting domestic production in India and curtailing imports. This would give a push to the demand for raw materials used in producing tyres like zinc oxide, zinc dross, steel cord, nylon cord and rubber growers, among others.
According to the notification, the importers will have to get their tyre import consignments cleared by the DGFT, which was not the case till now. Previously, all categories of tyre could be exported and imported freely; however, import of retreated tyres is restricted under Exim Policy and can only be done against an import license.
India produces 191.9mn tyres annually. There are 62 tyre manufacturing units in India generating $9bn revenue of which exports account for $1.8bn. In 2019, tyres worth $0.42bn were imported, data from Automotive Tyre Manufacturing Association (ATMA) indicates.
Earlier this year, the government restricted import of zinc dross, a crucial scrap material used in the production of zinc oxide. Zinc oxide is used in the vulcanization of rubber tyres.
The government recently had called for making the country Atmanirbhar Bharat (self-reliant and self sufficient India) to help India tide over the global COVID-19 crisis which affected international trade.