India will have to eventually move to lower customs duty regime, says DPIIT Secy Rajesh Kumar Singh

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India will have to eventually move to a lower customs duty regime and cannot continue to protect domestic manufacturers by citing infant industry argument, a senior government official said on Thursday..

Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh said that tariffs are not really considered a revenue source...

Normally, customs duties or tariffs are used as a policy tool to ensure a higher level of protection for certain sectors to boost domestic manufacturing...

"The DPIIT's view is that there are possibilities of using tariffs in a creative manner to protect some of our industries, particularly when they are subject to predatory pricing or dumping from certain geographies," he told reporters here.. While there is a need to protect sectors which are weak, there is no need to continue with the high tariff walls for segments that are doing well, he added...

Domestic toy manufacturing is strengthening, exports are increasing, and imports are coming down, he said.. Singh said that for the toy sector, the government is using high customs duties to provide a higher level of protection for some time...

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