The Department for Promotion of Industry and Internal Trade (DPIIT) has released a new Guidebook on Mapping of Harmonized System of Nomenclature (HSN) Codes. Unveiled by Union Minister of Commerce and Industry, Shri Piyush Goyal, the guidebook is a strategic instrument designed to promote a data-driven approach for manufacturing development, investment, and trade facilitation in India. The launch took place during an event celebrating 10 years of the “Make in India” initiative.
The comprehensive guidebook maps 12,167 HSN Codes to 31 Ministries and Departments of the Government of India. This extensive exercise aims to serve as a foundation for building a resilient and competitive manufacturing ecosystem.
Purpose and Development Process
The development of the guidebook was prompted by persistent challenges in trade negotiations and import substitution due to the lack of a definitive mapping of HSN Codes to specific government entities. This often led to misclassification of products and unclear ownership.
To resolve this, DPIIT undertook a meticulous process of value-chain and use-case analysis for each HSN Code, followed by a thorough review of the Allocation of Business (AoB) Rules, 1961. The process included extensive consultations with over 300 Ministries and numerous industry stakeholders to ensure that the mapping reflects on-the-ground realities.
According to Minister Goyal, this initiative will play an integral role in accomplishing the vision of “Viksit Bharat by 2047” by streamlining regulatory processes and enhancing the ease of doing business.
Three Pillars of Action
The guidebook is structured around three operational pillars designed to translate policy intent into actionable outcomes:
- Manufacture in India: This pillar focuses on positioning India as a global manufacturing hub by emphasizing sector-specific policy alignment, value chain strengthening, and workforce development.
- Strengthen Brand India: This aims to elevate the global perception of the ‘Made in India’ label by prioritizing quality enhancement.
- Make for the World: This pillar is dedicated to supporting more effective trade negotiations, enabling Indian products to capture a greater share in international markets.
In conclusion, the guidebook is a strategic instrument that empowers Ministries to adopt an outcome-oriented approach to economic growth by streamlining the custodianship of products. It is expected to be a pivotal catalyst in aligning policy, investment, and trade to help India achieve its industrial ambitions.