About 45 percent of Indian startups are emerging from tier-2 and tier-3 cities, Department of Industry and Internal Trade Promotion (DPIIT) Secretary Amardeep Singh Bhatia said on Wednesday, adding that sector-specific interventions are being developed to deepen the startup movement. .
Addressing the CII Global Economic Policy Summit, Bhatia said it is looking at ways to further integrate it with the global value chain and reduce tariffs. The secretary said that the weighted average tariff has come close to the global level, but domestic industries are pushing to increase the customs duty.
“We have established a robust startup ecosystem that is no longer confined to small pockets but spread across the country. In fact, 45 percent of our startups are from tier two and tier three cities, which is very encouraging. Sector-specific interventions have been designed to further expand this movement,” Bhatia said.
Regarding trade, Bhatia said, “It has been an important task to reduce the tariff by bringing the weighted average to the global level. However, the domestic industries are pressing for tariff increase. We need to analyze why these demands persist and why we are not competitive enough. “
The Ministry of Steel has requested the Ministry of Commerce and Industry to increase the tariff on steel import by 25 percent. While large steel producers support the increase, medium and small-scale downstream industries argue that it could affect exports.
Furthermore, US President-elect Donald Trump has hinted at possible new tariffs on imported steel to protect the US steel industry, and there are risks of an increase in steel tariffs on steel in the US. Trump said he would also block Japanese company Nippon Steel from acquiring Pennsylvania-based steelmaker US Steel.
Steel companies are facing various challenges in the international market, which has led to a sharp decline in exports and a significant increase in steel imports in India. In the first half of the current financial year, steel imports in India have increased by about 41 percent, while exports have decreased by 36 percent, according to official data.
Bhatia also said that free trade agreements (FTAs) are being negotiated, offering new opportunities to Indian businesses after supply chain disruptions due to the COVID-19 pandemic.