On 22nd May 2022, the Micro, Small and Medium Enterprises (MSME) sector players of India praised the government’s decision to lessen the duty on raw materials for steel and plastics in a way to reduce the prices. However, the sector owners stated that to ensure Indian exporters are not outbid by rivals on the international market and more efforts need to be made to ensure local supply chains remain competitive.
“The government should have cut import duty on aluminium, primary steel, copper and plastics to nil, only then inflation could be contained in a meaningful way”, said Anil Bhardwaj, the Secretary-General of the Federation of Indian Micro and Small & Medium Enterprises (FISME).
"The way duties have been reduced on petrol and diesel. There is a need to effect similar duty cuts on steel. Duty cut on raw materials of steel would only help steel-makers boost their profitability," Bhardwaj added.
Import duties on some raw materials, such as coking coal and ferronickel, have been reduced to zero, in order to reduce the cost of domestic steel production. Soliciting to diminish the cost of domestic production of plastic products, import duty on propylene oxide and polymers of vinyl chloride (PVC) has been brought down to 2.5% and 7.5% from 5% and 10%, respectively. Onwards from May 22, the new rates will have been implemented.
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