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    October 2014

CUSTOMS a hurdle in ‘Make in India’ success


September 2014 was all about India, the world and trade. When Prime Minister Narendra Modi launched the ‘Make in India’ campaign on September 25, the Chinese Government came up with its own ‘Made in China’ on the very same day. But is India ready for this challenge from the Asian giant?  Narendra Modi, on September 28, invited the Indian diaspora in America to join the Make in India initiative, saying the country is aimed to show its strength by exploiting technology to the maximum extent. But is that really possible? There are certainly many hurdles in trade transaction due to the age-old customs system which need to be addressed at first place. Till now the Tax Administration and Reforms Commission (TARC) has submitted two reports about the customs issue to Finance Minister Arun Jaitley – first on June 20 and the latest on September 26. Both the reports suggested the urgent need for change in the customs process but nothing has been done so far.  The latest report says the objective of trade facilitation is simplifying, rationalising, modernising and harmonising trade procedures with a view to expediting release and clearance of goods under the import, export and transit system. The report also focuses on bringing greater transparency and predictability to traders. But again India is still not on a par with its competitors. Our Cover Story focuses on major issues which need to be addressed before welcoming traders from abroad under the ‘Make in India’ initiative. Based on the TARC recommendations on Indian Customs policy, the story also highlights India’s initiative vis-à-vis China’s ‘Made in China’.  

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