Unctad plan for Ludhiana SMEs

Imports of 854 'sensitive' products will be restricted to protect domestic production

To promote small and medium enterprises (SMEs), the United Nations Conference on Trade and Development (Unctad), has drafted a list of sensitive and sectoral products in association with Ludhiana-based industry.

Of the 854 sensitive products listed by Unctad, 40 are related to industry in Ludhiana. Once a product comes under the "sensitive" list, imports of inputs to that particular product/sector will be restricted to help domestic industry.

In the same way, products under the "sectoral list" will be exempt from Customs duties for importsexports. Developing countries may impose duties of up to 2 per cent on imports but in developed countries duties will remain 0 per cent. Once finalised, it will be forwarded to the Union ministry of commerce and industry.

At the same time, feedback given by industry will be used a resource in putting forward the agenda of small-scale units at the WTO meet.

Unctad so far has identified 40 such products in Ludhiana and the process of confirmation and addition is going on, depending on the feedback of industry.

This is being done to help sinking firms like fasteners and products like granules, seamed circular pipes, tennis rackets, sinkers and needles, travel kits, looped and wrapped pile, fabrics, etc.

Speaking to Business Standard, the deputy secretary in the ministry of commerce and industry, Anant Swarup, said, "The idea is to promote it by raising the duties on imports fixed or keeping them as they are. Once we do that, foreign products will not available cheap and that will be of great help to the domestic industry.

"We have identified around 40 products here in Ludhiana itself. The steel sector is under crisis. We are looking forward to get inputs from the cycle, hosiery and sports sectors.

"The Customs duty for products under the sectoral list will be reduced to 0 per cent for both exportsimports. Developing countries may raise it from 0 to 2 per cent."

Unctad's Senior Trade Officer Abhijit Das said, "We are here to find out if industry here is agreeable to the tentative list we have prepared. We are ready to add or take out products as per the wishes of entrepreneurs. The idea is to learn of freight costs in the sector, how much of a product is manufactured by SSIsSMEs, any raw materials or inputs that should be kept on the sensitive list, etc."