Amendment in Import Policy of Umbrellas: A Boost for Indian Manufacturers

Amendment in Import Policy of Umbrellas: A Boost for Indian Manufacturers

The Government of India, through Notification No. 57/2025-26 dated 5 February 2026, has amended the import policy conditions for umbrellas classified under Chapter 66 of Schedule-I (Import Policy) of ITC (HS) 2022. Issued by the Directorate General of Foreign Trade (DGFT), this move reflects a calibrated policy intervention aimed at supporting domestic manufacturing while allowing fair trade.

Key Highlights of the Amendment

Under the revised import policy:

• HS Code 66019100 (Umbrellas having a telescopic shaft)
• HS Code 66019900 (Other umbrellas)

have been shifted from “Free” to “Restricted” category.

However, an important value-based relaxation has been introduced:

• Import of umbrellas under these HS codes will remain “Free” if the CIF value is ?100 or above per piece.
• Imports with a CIF value below ?100 per piece will now require import authorisation.

This amendment carefully targets low-priced umbrella imports, which have historically posed challenges to the domestic industry.

Rationale Behind the Policy Change

India has witnessed a steady inflow of cheap, low-quality umbrellas, often priced far below domestic production costs. These imports, primarily driven by cost arbitrage, have:

• Distorted market pricing
• Hurt small and medium Indian manufacturers
• Reduced incentives for quality upgradation and innovation

The revised policy seeks to correct this imbalance without imposing a blanket ban on imports.

Benefits for Indian Umbrella Manufacturers

1. Protection from Dumping of Cheap Imports

By restricting umbrellas priced below Rs. 100 CIF, the policy effectively curbs dumping of ultra-low-cost products, which are often sold at prices Indian manufacturers cannot realistically match while complying with labour, quality, and tax norms.

2. Level Playing Field for Domestic Industry

Indian umbrella manufacturers, especially MSMEs, will now compete on fairer terms, as imported products must meet a minimum value threshold or undergo regulatory scrutiny.

3. Encouragement for Quality-Based Competition

Since higher-value imports remain free, the policy shifts competition from price-based dumping to quality-based differentiation, incentivising both domestic and foreign players to focus on durability, design, and innovation.

4. Boost to MSMEs and Employment

The umbrella manufacturing sector in India is largely MSME-driven, providing employment to thousands of workers across clusters. Reduced pressure from cheap imports can lead to:

• Better capacity utilisation
• Increased domestic production
• Job retention and potential job creation

5. Alignment with “Make in India” Vision

This amendment aligns with the government’s broader objectives under Make in India and Atmanirbhar Bharat, by supporting domestic value addition without violating trade commitments.

Balanced and Trade-Compliant Approach

Importantly, the government has not imposed an outright ban. By keeping imports free above a reasonable CIF value, the policy:

• Ensures availability of premium and specialised umbrellas
• Avoids supply shortages
• Maintains compliance with international trade norms

This balance reflects a measured, WTO-consistent approach to trade regulation.

Conclusion

The amendment in the import policy for umbrellas under Chapter 66 is a strategic and timely intervention. By restricting low-value imports while allowing higher-value products to flow freely, the government has sent a clear signal in support of Indian manufacturers, MSMEs, and domestic employment, without compromising consumer choice or trade openness.

For Indian umbrella manufacturers, this change offers much-needed relief, stability, and an opportunity to grow competitively in the domestic market.

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