How is the Government Enhancing Manufacturing with the New HSN Code Guidebook?
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Synopsis
The recent release of an HSN Code guidebook by Union Minister Piyush Goyal marks a pivotal step in enhancing India's manufacturing landscape. With over 12,000 product codes mapped to 31 ministries, this initiative aims to streamline regulatory processes and promote investment, ultimately boosting economic growth.
Key Takeaways
- The guidebook provides a roadmap for over 12,000 product codes.
- It aims to streamline regulatory processes and improve ease of doing business.
- Three main pillars guide the operational structure of the guidebook.
- It supports national economic priorities and trade negotiations.
- India's manufacturing sector shows promising growth trends.
New Delhi, Sep 21 (NationPress) - The Union Minister of Commerce and Industry, Piyush Goyal, has unveiled a comprehensive Guidebook for the Mapping of Harmonised System of Nomenclature (HSN) Codes, which assigns 12,167 product codes across 31 ministries and Departments of the Central Government.
This guidebook specifies responsible custodians for each product code, employing a data-centric strategy aimed at fostering industrial growth, promoting investment, and facilitating trade, as stated in an official announcement.
By clearly identifying the relevant ministry or department for each code, the guidebook aims to streamline regulatory procedures and improve India's overall business environment.
The launch of the guidebook coincided with an event commemorating the 10-year anniversary of the Make in India initiative and discussions surrounding Next Gen-Reforms 2.0. According to officials, this guidebook will lay the groundwork for developing a resilient and competitive manufacturing landscape.
Moreover, it will aid in conducting more effective Trade Agreement negotiations that are in sync with national economic goals and sectoral strengths.
The Department for Promotion of Industry and Internal Trade tackled challenges related to unmapped or misclassified HSN codes by performing value-chain and use-case analyses, revising Allocation of Business rules, and engaging in over 300 individual discussions with various ministries and departments, all backed by extensive stakeholder consultations.
A dedicated section titled “How to Use the Guidebook?” has been included, and the guidebook is structured around three crucial operational pillars.
The initial section, “Manufacture in India,” focuses on aligning sector-specific policies, fortifying value chains, and enhancing workforce skills. The other sections are titled “Strengthen Brand India” and “Make for the World.”
As per the latest data from the Annual Survey of Industries (ASI), India's manufacturing sector witnessed significant growth in FY 24, with Gross Value Added (GVA) soaring by 11.89 percent, a notable increase from 7.3 percent the previous year.
Point of View
This initiative underscores the government's commitment to enhancing India's manufacturing capabilities. By streamlining regulatory processes and aligning policies with sectoral strengths, the guidebook represents a strategic move towards a more robust and competitive economic landscape, benefiting stakeholders across the board.
NationPress
22/09/2025
Frequently Asked Questions
What is the purpose of the HSN Code guidebook?
The HSN Code guidebook aims to streamline regulatory processes, enhance investment and trade facilitation, and support India's manufacturing ecosystem.
How many product codes are included in the guidebook?
The guidebook maps a total of 12,167 product codes across 31 ministries and departments.
What sectors does the guidebook cover?
The guidebook includes various sectors under the umbrella of manufacturing, focusing on aligning policies and strengthening value chains.
How does this guidebook affect trade negotiations?
The guidebook will support more effective trade agreement negotiations aligned with national economic priorities.
What was the growth rate of India's manufacturing sector in FY 24?
India's manufacturing sector grew by 11.89 percent in FY 24, according to the Annual Survey of Industries.
