Key facts
- India will soon decide on extending customs duty relief for critical raw material imports beyond June 30.
- An inter-ministerial panel will convene next week to review these measures.
- The panel will consider proposals for fresh import duties on certain locally manufactured electronic items.
- The pharmaceutical and steel sectors have requested duty cuts on critical inputs.
- Previous duty exemptions on petrochemicals, plastics, and drug manufacturing inputs expire this month.
India is poised to make a decision on extending customs duty relief for a range of critical raw material imports, with the current exemptions set to expire on June 30. A senior government official indicated that an inter-ministerial panel will convene next week to deliberate on this matter.
The panel's agenda includes reviewing existing relief measures, considering proposals for duty cuts on additional industrial inputs, and potentially imposing new duties on select electronic items and components where domestic manufacturing capabilities are robust. The pharmaceutical and steel sectors are among those seeking continued duty relief, particularly for inputs essential for critical drug production.
Previously, in April, the government suspended import duties on 40 petrochemical products to support downstream industries like plastics and pharmaceuticals, which were facing supply chain disruptions attributed to the conflict in Iran. These exemptions are scheduled to end this month.
Beyond duty adjustments, the panel will also explore other relief measures for industries grappling with increased input costs, especially those linked to crude oil prices. The meeting is expected to be attended by officials from the finance ministry, commerce and industry ministry, and other key government departments. A decision on restricting electronics imports will be contingent on feedback from the Ministry of Electronics and Information Technology and the commerce ministry, given the significant weight of electronic goods in India's import basket.