India bans import of air conditioners with refrigerants

Air-conditioner

On Thursday, The Central Government banned the import of air-conditioners with refrigerants. In order to encourage and promote domestic manufacturing, eliminating imports of non-essential products, this move has been executed.

Earlier on October 15th, The Director-General of Foreign Trade (DGFT) issued a notice which mentioned that the policy of importing air conditioners with refrigerants is amended and now stands prohibited. The imposed ban on air-conditioners with refrigerants applies for both window and split versions.

Minister of Commerce & Industry, Mr. Piyush Goyal has approved the decision to prohibit these products after which the announcement was publicised and the ban was officially imposed. As the festive season is around the corner, which boosts the sales of the electronic items including these non-essential items, the ban has been imposed. This move is seen as a step to encourage domestic production by curbing the imports of non-essential products.

It is also speculated that the ban imposed is a part of India’s Atmanirbhar Bharat campaign which was started earlier this year.  The purpose of this campaign is to make India self-dependent. The government has already restricted the import of specific color TVs, agarbattis and tyres.

To boost indigenisation of defence production in the country, India has already banned about 101 Defence items in August. To encourage self-dependency in the country, defence products will be manufactured in India.

Almost 90% of the total air-conditioners imported in India included refrigerants in it. In the financial year 2019-20, India imported split air-conditioners valued at $469 million.

Out of those, $241 million air-conditioners were imported from China and $189 million were imported from Thailand.

After the skirmish that occurred on the Indo-China border, Chinese imports and investments have been facing major scrutiny in India. India is looking to restrict trade relations with China as a part of India’s Atma Nirbhar policy. In April, the government made changes in foreign direct investment (FDI) policy by making government clearance compulsary from all the neighbouring countries.

In the month of July, India restrained Chinese firms from taking part in the public procurement bids by India.On the grounds of national security, India has banned several Chinese apps recently including TikTok.

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