Union Minister Nitin Gadkari on Sunday said the Centre is formulating a scheme to encourage "import substitute products" in the manufacturing sector in order to save foreign exchange.
India has increased import tariffs or imposed duties by withdrawing the exempt status of goods over the past few years to encourage local manufacturing.
"There are many industries which are working on import substitute products and saving the nation's money. The Central government is forming a scheme to encourage these industries," the Union minister for MSMEs said.
He was talking to industry captains of the region at an MSME expo in Aurangabad.
CII official Mukund Kulkarni urged the government for concrete steps and encouragement firms working on import substitute products.
Replying to a question from Vasant Waghmare, president of Waluj Industrial Association, over delayed payment time limit and law, Gadkari said many companies go bankrupt and the consequences are faced by the smaller units attached to it.
"The government will look into this matter seriously and policy will be framed for the same, he said.
He urged the industrial sector to work on cutting down expenditure on power, logistics and capital by exploring new dimensions.
Earlier in June last year, Nitin Gadkari said the MSME sector offers huge potential and the government is ready to come out with special policies to promote import-substitute products.
Addressing the India-Singapore symposium then, organised by CII in New Delhi, Gadkari stated that,
"One of the most important things is that we have to raise the employment potential and it is my priority, both in rural and urban areas.”
Gadkari also recently said the ban on entry of corporates and private players in the MSME sector has been lifted to pave way for the formation of 700 clusters in order to reduce dependence on imports as well as for job creation.
He also urged Indian industry to join hands in bringing innovative ways of financing, adding that there was no "trust deficit" between industry and the government, which has been constantly doing away with "red-tapism".
(Disclaimer: Additional background information has been added to this PTI copy for context)