The chemicals industry has urged the government to adjust customs duties on specific products in the upcoming budget to reduce imports from China and strengthen domestic manufacturing.
Key products like polyethylene terephthalate (PET) and polyvinyl chloride (PVC) are at the centre of this request, as the industry looks to enhance competitiveness and protect local production.
China’s Dominance in Global Exports
China remains the world’s largest exporter of essential products such as polyethylene terephthalate (PET) resins, purified terephthalate acid (PTA), polyvinyl chloride (PVC), and polyester fiber.
Industry experts have raised concerns about the potential influx of cheap imports from China, which, combined with global overcapacity, poses a threat to India’s manufacturing sector.
The flat demand growth in many countries and shifting geopolitical dynamics only add to the urgency of the situation.
Rising Import Pressure on Domestic PET Producers
India has made significant strides in increasing its domestic capacity for PET bottle-grade chips. However, the rise in low-cost imports, particularly from China, has undermined the competitiveness of Indian manufacturers.
Industry insiders argue that action is needed to address this influx and ensure fair competition for domestic producers.
Need for Revisiting PVC Tariff Levels
Polyvinyl chloride (PVC) is an essential material used across various sectors, including construction. Industry leaders are now calling for a tariff review in this area.
With its vital role in the economy, the industry advocates for restoring PVC duties to pre-2022 levels of 10 percent.
The adjustment, they argue, would provide the necessary stimulus to boost domestic manufacturing capacity.
Request for Government Action
The chemicals industry has formally shared these concerns with the government, urging consideration in the upcoming budget.
As reported by dailypioneer.com, the sector hopes to foster stronger domestic growth with these tariff adjustments. This move aims to reduce reliance on imports and contribute to the overall health of India’s manufacturing economy.
