Boosting India's Manufacturing: Tackling Supply Chain and Tariff Challenges

India's manufacturing competitiveness is hindered by dumped imports, critical raw material dependence, and inverted customs duties, as per C-DEP and the Centre for WTO Studies' reports. Recommendations include targeted policy interventions to bolster domestic manufacturing and supply chain resilience across key sectors like textiles and telecommunications.

India's manufacturing sector faces significant competitive challenges due to dependency on dumped imports, essential raw materials, and skewed customs and GST duties. These issues are spotlighted in a series of reports by C-DEP Research and the Centre for WTO Studies, released Tuesday.

The findings underscore the criticality of nylon filament yarn, PET resin, viscose staple fibre, and optical fibre cables, vital for sectors ranging from apparel to defence communications. Although India has developed substantial manufacturing capabilities, persistent supply-chain issues hinder investment and elevate import reliance.

To counteract these challenges, the reports advocate for policy measures, such as stringent anti-dumping duties, revisions in customs and GST structures, and sourcing diversification. Strengthening India's manufacturing infrastructure could enhance its global standing and reduce import dependencies.