Union Minister Nitin Gadkari said the Centre is formulating a scheme to encourage "import substitute products" in the manufacturing sector in order to save foreign exchange.
India has increased import tariffs or imposed duties by withdrawing exempt status of goods over the past few years to encourage local manufacturing.
"There are many industries which are working on import substitute products and saving the nation's money. The Central government is forming a scheme to encourage these industries," the Union minister for micro, small and medium enterprises (MSMEs) said.
He was talking to industry captains of the region at an MSME expo here.
CII official Mukund Kulkarni urged the government for concrete steps and encouragement to firms working on import substitute products.
Replying to a question from Vasant Waghmare, president of Waluj Industrial Association, over delayed payment time limit and law, Gadkari said many companies go bankrupt and the consequences are faced by the smaller units attached to it.
"The government will look into this matter seriously and policy will be framed for the same, he said.
He urged the industrial sector to work on cutting down expenditure on power, logistics and capital by exploring new dimensions, he said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
