General Economics & Indian Economy - GS questions based on daily current affairs for Q. 20186

Q.  Which of the following is/are true about Minimum Import Price?

1) Minimum Import price is the price which does not include import duties and hence is less.
2) Minimum Import price is detrimental to domestic industry.
- Published on 15 Mar 16

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

ANSWER: Neither 1 nor 2
 
  • MIP, which would set the floor price, below which imports into the country would not be allowed is the floor price, below which imports into the country would not be allowed
  • The MIP is defined as equivalent to the weighted average global price of a product and the non-injury price arrived at during the course of safeguard and anti-dumping proceedings, whichever is lower.
  • This price helps the domestic industry.
  • However some are also of the point of view that MIP will inflate prices of raw materials. Engineering exports, start-up projects as well as 'Make in India' will also suffer.

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