New Delhi, Sep 19: As part of efforts to check rising current account deficit (CAD) amid falling rupee, the government is likely to announce restrictions on non-essential import items very soon, Subhash Chandra Garg, Secretary at the Department of Economic Affairs informed on Wednesday. On Friday, the government had decided to relax norms for raising overseas borrowing and impose restrictions on the non-essential imports at a meeting chaired by Prime Minister Narendra Modi to review the state of the economy.
Reports inform that a higher duty may be imposed on items including luxury cars, steel, finished steel, furniture, high-end mobile phones, electronics and food items such as fruits and almonds. Finance Minister Rules Out Immediate Cut In Fuel Prices! 'Government To Stick To Expenditure, Fiscal Deficit Targets', Says Arun Jaitley
On September 12, the rupee had touched an all-time low of 72.91 against the US dollar on closed at 71.84. Union Finance Minister Arun Jaitley had said that the government would also take steps to promote exporters and restrict non-essential imports, adding that the decisions are aimed at checking the CAD and increase foreign exchange inflows.
The Finance Minister, however, did not disclose, the items on which import restrictions would be imposed. After the meeting, Jaitley informed that the commodities of which imports will be cut down will be decided after consultations with concerned ministries and will be WTO-compliant.