Shielding Industries: New Import Price on Umbrellas Boosts Indian Manufacturing

The Indian government has implemented a minimum import price of Rs 100 per umbrella to enhance domestic production. Import restrictions, however, exclude certain authorized importers. This move, coupled with increased import duties, aims to reduce reliance on China, which currently provides 95.8% of India's umbrella imports.

The government of India has taken a strategic step to bolster its domestic umbrella production by setting a minimum import price of Rs 100 per piece. This move, announced on Thursday, prohibits the import of umbrellas priced below this amount as part of revised policies.

According to a notification from the Directorate General of Foreign Trade (DGFT), the import policy for finished umbrellas has been changed from 'free' to 'restricted'. However, umbrellas with a CIF (cost, insurance, freight) value of Rs 100 or higher can still be freely imported. Exemptions apply to importers with Advance Authorisations, export-oriented units (EOUs), and those operating within special economic zones (SEZs).

This initiative follows the recent Budget 2026-27's adjustment of import duties, raising them to Rs 60 per umbrella or 20%—whichever is greater. The duty for importing parts, trimmings, and accessories has also been increased. Currently, China accounts for 95.8% of India's umbrella imports, underscoring the government's drive to promote local manufacturing and reduce dependency.

(With inputs from agencies.)