The Indian government's decision to prohibit the import of cigarette lighters under ₹20 has several economic implications. Here are some key points: 1. Boost to domestic lighter manufacturing: The prohibition will create a market opportunity for domestic lighter manufacturers, stimulating domestic production and supporting Indian businesses. This can lead to job creation and revenue generation within the country. 2. Reduction in imports: By prohibiting the import of cheaper lighters, the government aims to reduce reliance on foreign products and minimize the outflow of foreign currency. This can help improve the trade balance and strengthen the domestic economy. 3. Quality control: The decision encourages the use of higher-quality lighters, as cheaper ones often lack safety features and pose risks. With the prohibition, the government aims to ensure that consumers have access to safer products that meet quality standards. 4. Price stability and taxation: The prohibition may lead to an increase in the prices of lighters, as domestic manufacturers may have higher production costs compared to foreign suppliers. Additionally, increased tax revenue can be generated for the government through the production and sale of higher-valued lighters. Overall, the prohibition is expected to support domestic manufacturing, improve product safety, and address trade imbalances, but it may also impact consumers through higher prices.