Lower import duties on raw material: AIRIA
Updated: Feb 23, 2015 02:48:47pm
Jalandhar, Feb 23 (KNN) All-India Rubber Industries Association (AIRIA) in its pre-budget discussions with the government has asked for the lowering of import duties on raw material and the raising of duties on the import of finished rubber products.
They claim that higher import duties on raw materials such as natural and synthetic rubbers than on finished rubber goods has affected the growth of the rubber sector in India as the country is deficient both in natural rubber and synthetic rubber production which are imported. They emphasised that if this is corrected, the stress on domestic manufacturing and ‘Make in India’ initiative by the Modi govt. could gain further momentum as the sector manufacturing rubber products in the country, with over 6,000 units, mostly micro, small and medium enterprises (MSMEs), has a huge potential for employment generation.
But, since import duty for raw materials is at 20-70 per cent, the cost of finished goods made from these imported raw materials also increases, hard-hitting the domestic manufacturers, mostly the small and medium enterprises.
As small manufacturers can’t compete with cheaper goods imported from China and other countries, many small rubber goods manufacturers have turned to trading of rubber goods leading to a loss to the exchequer and also loss of employment.
The import duty on rubber products is between 0 to 10 per cent, while the duty on raw materials for the rubber industry is between 5 to 70 per cent. The import duty on natural rubber in China is 10 per cent as against 20 per cent or Rs 30 per kg in India. They also proposed reduction of custom duty on raw materials and import tariffs under the ASEAN free trade agreement (FTA), in line with concessional tariff on finished products. (KNN/SS)
They claim that higher import duties on raw materials such as natural and synthetic rubbers than on finished rubber goods has affected the growth of the rubber sector in India as the country is deficient both in natural rubber and synthetic rubber production which are imported. They emphasised that if this is corrected, the stress on domestic manufacturing and ‘Make in India’ initiative by the Modi govt. could gain further momentum as the sector manufacturing rubber products in the country, with over 6,000 units, mostly micro, small and medium enterprises (MSMEs), has a huge potential for employment generation.
But, since import duty for raw materials is at 20-70 per cent, the cost of finished goods made from these imported raw materials also increases, hard-hitting the domestic manufacturers, mostly the small and medium enterprises.
As small manufacturers can’t compete with cheaper goods imported from China and other countries, many small rubber goods manufacturers have turned to trading of rubber goods leading to a loss to the exchequer and also loss of employment.
The import duty on rubber products is between 0 to 10 per cent, while the duty on raw materials for the rubber industry is between 5 to 70 per cent. The import duty on natural rubber in China is 10 per cent as against 20 per cent or Rs 30 per kg in India. They also proposed reduction of custom duty on raw materials and import tariffs under the ASEAN free trade agreement (FTA), in line with concessional tariff on finished products. (KNN/SS)
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