Domestic refrigerator makers have approached the government to put import restrictions on the product to boost local manufacturing, according to sources.
An importer will have to seek a license or permission from the government if refrigerators are put under the restricted category of imports.
“We have received a proposal regarding this from the industry,” one of the sources said.
In October last year, the government banned imports of air conditioners with refrigerants with a view to promoting domestic manufacturing and cutting imports of non-essential items.
An industry source said that they are waiting for the Department for Promotion of Industry and Internal and Internal’s (DPIIT) decision on this issue.
“India has a surplus capacity to manufacture refrigerators. Because of free trade agreements (FTAs) with some countries, certain products are being imported at concessional duties,” the industry source said, adding today the capacity available in India is far more than demand, and in the next couple of years, the capacity is going to increase even further and that would impact the domestic production.
This is the reason, the domestic industry has requested to control the imports of refrigerators.
Presently, India has an installed capacity to manufacture 23 to 24 million units per year and the import consists of around 8 per cent of the total sales.