Press Information Bureau

Government of India

Ministry of Commerce & Industry

14-May-2012 16:39 IST

The import of dry cells has substantially decreased while the production has shown marginal decline.

The decline can be attributed to rising input costs and reduced demand due to increase in prices and change in consumer preferences to more energy efficient products.

For enhancement of domestic production of dry cells, the industry is de-licensed and eligible for foreign direct investment up to 100% on the automatic route.

This information was given by Shri Jyotiradiya M. Scindia, Minister of State for Commerce & Industry in written reply to a question in Lok Sabha today.

DS/GK

De-licensing of dry cell industry allows full automatic-route foreign investment while production shows marginal decline. The dry cell sector is de-licensed and eligible for foreign direct investment on the automatic route, allowing full foreign participation; imports have substantially decreased while domestic production has shown a marginal decline, attributed to rising input costs, increased retail prices, and consumer shifts to more energy-efficient products, a context relevant to policies aimed at enhancing domestic production and attracting investment.