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Delays in custom clearance at ports to impact vehicle manufacturing: SIAM

Delays in custom clearance at ports to impact vehicle manufacturing: SIAM

Delays in port clearance due to manual inspection of import consignments is expected to impact vehicle manufacturing in the country, Society of Indian Automobile Manufacturers (SIAM) has said.

According to SIAM President Rajan Wadhera, inordinate delays in clearance due to congestion at ports could eventually impact manufacturing of vehicles in India.

“The industry is piecing itself together as growth is limping back; any further disruption at this juncture is best avoided,” he said.

With the Centre taking a tough stand on imports from China amid border tensions, several industries that depended on inputs from that country are facing delay in getting their supplies as the goods are held up at ports and airports and are being subjected to stricter customs scrutiny.

Several industry bodies, from apparel to electronics, have written to the government urging faster Customs clearance as delays might affect the manufacturing process.

Citing the gravity of situation, many industry bodies said the delay in clearances of goods was adding to the crisis for the industry that was gearing up to get back to the normal after easing of lockdown in India and other countries.

The adverse action by the customs is also expected to impact over 200 mobile and electronic manufacturing units, set up following the 'Make in India', 'Digital India' and 'Phased Manufacturing Programme' initiatives.

As the call grows for lowering dependence on Chinese imports and becoming self-reliant, experts and industry players have cautioned against knee-jerk reactions and sought building of adequate infrastructure and supply chain in the country.

The impact of such action at the moment might be severe as industries were reeling under financial crisis post-lockdown, industry experts said.

While the Narendra Modi government has underlined the need to become more self-reliant and push for Make In India scheme, experts said that it may take some time to shift gears..