India is weighing the extension of import duty exemption on 40 critical petrochemical products beyond June 30, according to a government official. The decision aims to protect the domestic industry from ongoing supply chain disruptions.
Background of the Exemption
The government had earlier provided a 'temporary and targeted relief' by exempting these products from customs duty, effective from April 2. This move was intended to mitigate the impact of global supply chain challenges on domestic manufacturers.
Current Status
The official, speaking on condition of anonymity, stated that the government is reviewing the situation and a final decision is expected soon. The extension would ensure continued support for industries reliant on these imports.
Impact on Domestic Industry
The exemption covers critical inputs for various sectors, including plastics, chemicals, and pharmaceuticals. Industry bodies have urged the government to extend the relief, citing persistent volatility in global markets and raw material prices.
The government's move underscores its commitment to stabilizing domestic production and shielding industries from external shocks. A formal announcement is anticipated in the coming weeks.
