Defence Ministry to impose import embargo on 101 items
Aim is to boost indigenous production, says Rajnath Singh
- The Defence Ministry will “introduce import embargo on 101 items beyond given timeline to boost indigenisation of defence production”, Defence Minister Rajnath Singh announced through a series of tweets on Sunday.
- Speaking at a function later in the day, he said the government intends to reach a turnover of $25 billion through indigenously manufactured defence products and also expects to export products worth $5 billion.
- “Government has also decided that in any government contract over ₹200 crore, no foreign company can participate in the tendering process… We will help Indian defence manufacturers… This year ₹52,000 crore items [are] to be bought only from Indian companies,” Mr. Singh said in an online interaction.
- “In his address to the nation on August 15, Prime Minister Narendra Modi will present the outline for a self-reliant India,” he added.
- The policy change comes in the wake of Chinese transgressions and the build-up along the Line of Actual Control (LAC) in Ladakh. China has refused to pull back from several areas, where it has massed troops since May.
- “The Ministry of Defence is now ready for a big push to #AtmanirbharBharat initiative… The Ministry has prepared a list of 101 items for which there would be an embargo on the import beyond the timeline indicated against them… This is a big step towards self-reliance in defence. #AtmanirbharBharat,” Mr. Singh tweeted.
An embargo is a government order that restricts commerce with a specified country or the exchange of specific goods. An embargo is usually created as a result of unfavorable political or economic circumstances between nations. It is designed to isolate a country and create difficulties for its governing body, forcing it to act on the issue that led to the embargo.
An embargo is a government order that restricts commerce with a specified country or the exchange of specific goods.
They are usually created as a result of unfavorable political or economic circumstances between nations.
Embargoes can have serious negative consequences on the affected nation’s economy.
Decisions on trade embargoes and other economic sanctions are often based on mandates by the United Nations.
How an Embargo Works
An embargo is a powerful tool that can influence a nation, both economically and politically. The ability to easily trade goods all over the world is key to maximizing the economic prosperity of a country. When that is no longer possible, it can have serious negative consequences.
The decisions on trade embargoes and other economic sanctions made by the United States are often based on mandates by the United Nations (UN), an international organization formed in 1945 to increase political and economic cooperation. Allied countries frequently band together, making joint agreements to restrict trade with specific nations. This is often done to force humanitarian changes or reduce perceived threats to international peace.
Embargoes do not necessarily apply to all goods moving in and out of a country’s borders. Sometimes only certain items are embargoed, such as military equipment or oil.
Types of Embargoes
There are several different types of embargoes. A trade embargo refers to banning exports or imports to or from one or more countries. These can then be narrowed down more specifically. For example, a strategic embargo prevents the exchange of military goods with a country, while an oil embargo prohibits only the trade of oil.
The term embargo is also used in the media industry. When information is released with an embargo, it means that it cannot be published or shared before a certain specified date. Companies often embargo press releases.