India's chemical industry calls for budget tariff changes to boost domestic manufacturing

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India's chemical industry has called on the budget to adjust tariffs on PET and PVC, aiming to reduce dependence on China, boost domestic manufacturing and promote economic growth.

Chemical industry calls for budget tariff changes to boost domestic manufacturing

as the global chemical market continues to change, the Indian chemical industry is actively calling on the government to adjust the tariff policy in the new budget, with special attention to key materials such as polyethylene terephthalate (PET) and polyvinyl chloride (PVC). The move aims to further boost domestic manufacturing by reducing dependence on Chinese imports.

Market Status and Challenges

as the world's leading exporter of chemical products, China occupies an important position in the fields of PET resin, purified terephthalate (PTA) and polyester fiber. However, with global overcapacity and stagnant demand growth in various regions, coupled with the impact of geopolitical dynamics, the Indian market is facing the impact of cheap imported products. Although India's domestic production capacity for PET bottle-grade chips has increased significantly in recent years, low-cost Chinese imports still pose a serious challenge to domestic manufacturers.

PVC tariff adjustment voice is high

the tariff structure of PVC, which occupies an important position in construction and other industries, has also attracted wide attention from stakeholders. They agreed that restoring PVC tariffs to the level of 10% by 2022 will help stimulate domestic manufacturing and inject new impetus into economic growth. This proposal aims to improve the competitiveness of domestic PVC manufacturers and promote the development of related industrial chains through policy adjustments.

Polyester field seeks protection

in the field of man-made fiber (MMF) polyester, India is also facing competitive pressure from low-cost Chinese imports. This has led to the suppression of domestic capacity utilization and affected the healthy development of the industry. To this end, the industry advocates an increase in polyester tariffs to 10% to protect local producers from unfair competition and encourage increased production capacity. This move is highly compatible with the ambitious goal of the Indian government to grow the textile industry to $350 billion by 2030.

Formal Appeal

in response to the above challenges and opportunities, the chemical industry has formally put forward the demand for tariff adjustment to the government. They hope that Finance Minister Nirmala Sitharaman will fully consider and adopt these suggestions in the upcoming budget to be announced on February 1. By implementing these proposed tariff adjustments, the chemical industry is expected to regain its competitive advantage and drive continued growth in domestic manufacturing.

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