India Intensifies Crackdown on Substandard Imports to Shield Domestic Industry

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The Indian government has launched a series of robust measures to curtail the influx of substandard imports, aiming to protect domestic industries from the adverse effects of cheaper and non-compliant goods flooding the market. Officials have confirmed that the Directorate General of Trade Remedies (DGTR), operating under the Department of Commerce, is spearheading these efforts in accordance with the Customs Tariff Act, 1975. This marks a determined approach to safeguarding economic and public health standards within the country.

The DGTR plays a critical role by conducting investigations under the Customs Tariff Act into anti-dumping, safeguard measures, and countervailing concerns. Each investigation is initiated based on substantiated petitions filed by domestic industries, and subsequent recommendations are forwarded to the Ministry of Finance for final decisions. During this financial year, up to February 2025, 206 cases involving the import of goods violating intellectual property rights and safety standards have been recorded. These goods, valued at approximately $25 million, were found to breach norms established by the Bureau of Indian Standards (BIS) and the Food Safety and Standards Authority of India (FSSAI). These violations prompted authorities to impose strict actions under the Customs Act, 1962.

The Directorate of Revenue Intelligence, along with Customs field formations under the Central Board of Indirect Taxes and Customs (CBIC), has implemented constant monitoring mechanisms to identify and address imports that do not meet regulatory standards. Through the Indian Customs Risk Management System (RMS), authorities employ a risk-based selective examination and testing model to preempt the entry of inferior goods into the market. These strategies align with India’s broader regulatory framework, which seeks to ensure that all imported goods adhere to domestic safety, environmental, and quality norms. Notably, BIS standards applicable to local goods are equally enforced on imports, leveling the playing field for domestic manufacturers.

In addition to technical and safety standards for industrial products, the import of food and agricultural products is tightly regulated. The Food Safety and Standards Act, 2006, and its corresponding regulations oversee the entry of edible items into India. These goods are cleared only after rigorous scrutiny, including document checks, visual inspections, sampling, and laboratory testing, ensuring their compliance with FSSAI standards. Plant-based and animal-based products are also subject to stringent quarantine measures, with imports requiring phytosanitary and sanitary clearances.

The government’s multi-pronged legal framework extends beyond food and agriculture, encompassing environmental and safety norms designed to protect human, animal, and plant health. Imported goods face rigorous scrutiny under India’s Foreign Trade Policy to ensure compliance with an array of regulations, from technical specifications to environmental safety. This meticulous process underscores India’s commitment to prioritizing the welfare of its producers and consumers alike.

Commerce Minister Jitin Prasada, in a recent statement to the Lok Sabha, emphasized that these measures reflect the government’s resolve to protect domestic manufacturers and consumers from the ramifications of substandard imports. Prasada highlighted the coordinated efforts of the DGTR, CBIC, and FSSAI in enforcing compliance while simultaneously facilitating legitimate trade.

India’s decisive actions against substandard imports demonstrate a keen understanding of the challenges posed by globalization. By prioritizing safety, quality, and fairness, the government aims to bolster its domestic industries, elevate public health standards, and strengthen the country’s position in the global trade ecosystem. These initiatives resonate with a broader vision to create a self-reliant India that thrives on equitable and sustainable growth.

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