Saving Domestic Jobs: The Call for Higher Import Duties on Petrochemicals

A leading trade body in India has urged the government to increase import duties on key petrochemicals to curb potential dumping by countries like China. The measure aims to protect domestic industry, boost local production, and align with India's Atmanirbhar Bharat economic vision.

Concerns are rising within India's petrochemical industry as global competitors, particularly China, might exploit low import duties to flood the market. To combat this and safeguard domestic jobs, the Federation of Indian Chambers of Commerce and Industry (FICCI) has called on the government for a hike in import duties.

The proposed policy change, directed at the Ministry of Chemicals and Fertilizers, aims to increase duties on polypropylene and polyethylene from 7.5% to 12.5%. FICCI's Petrochemicals and Plastic Committee warns of a significant trade deficit and underutilized domestic capacity, advocating for increased tariffs as a protective measure.

This move, aligned with the Atmanirbhar Bharat initiative, seeks to enhance self-reliance, support economic growth, and address infrastructural challenges in the petrochemical sector, ensuring a strategic balance between foreign imports and domestic production.

(With inputs from agencies.)