New guidelines were released by the Ministry of Commerce and Industry to support domestic tyre production.
This move is a reaction to the substantial expansion seen in the Indian tyre business, fueled by an increase in domestic sales and exports abroad. The rise in vehicle ownership, along with the development of mobility and industrialization, are the main causes of the increase in demand.
The Ministry of Commerce and sector has created fresh criteria for tyre producers, mandating their commitment to invest in the country through brownfield or greenfield projects exclusively for tyre production. This is done in recognition of the overall expansion of India’s tyre sector The scope of the restricted list ought to apply to these projects. According to the Ministry of Commerce and Industry and Industry, the relevant department of the Department for Promotion of Industry and Internal Trade (DPIIT) has access to more specific information.
The official statement emphasised the tyre industry’s benefits from rising car ownership. Additionally, the growing trends in industrialisation and mobility are to blame for the rising need for tyres for commercial vehicles like trucks and buses.
The introduction of improved and environmentally friendly tyre varieties, as well as a greater emphasis on research and development (R&D), have both significantly aided in the growth of the tyre market.
According to Notification No. 12/2015-2000 dated 12-06-2020 issued by the Directorate General of Foreign Trade (DGFT), import authorizations for new pneumatic tyres have been categorised in the “restricted category” due to the current situation. As a result, importers must follow the Ministry’s instructions and submit requests for Import Licences for tyres covered by the aforementioned notification.