Revitalizing India's Chemical Industry: Customs Duty Reforms Sought

The Indian chemicals industry is advocating for changes in customs duties on products like Polyethylene Terephthalate and Polyvinyl Chloride to reduce Chinese imports and enhance local manufacturing. With global overcapacity and shifting geopolitical dynamics, cheap imports threaten domestic production, prompting calls for duty restorations and tariff hikes.

The Indian chemicals industry is pushing for revisions in customs duties on specific products, including Polyethylene Terephthalate (PET) and Polyvinyl Chloride (PVC), in the upcoming Budget. These changes are aimed at curbing imports from China and boosting domestic manufacturing capabilities.

As China remains the leading exporter of crucial products such as PET resins, PVC, and polyester fiber, the global overcapacity combined with stagnant demand in multiple countries creates a risk of low-cost imports into India.

Industry representatives highlight the need to restore customs duties to pre-2022 levels to protect the domestic market. They argue that increased tariffs on polyester would not only defend local manufacturers but also align with India's textile sector growth ambitions.

(With inputs from agencies.)