#Rubber Industry - Inverted Duty Structure!
High import duty on raw materials and low import duty on finished products is hurting the domestic manufacturing industry, making it noncompetitive in the international market.
@VijayKedia1 @Arunstockguru @anshulbahl21
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High import duty on raw materials and low import duty on finished products is hurting the domestic manufacturing industry, making it noncompetitive in the international market.
@VijayKedia1 @Arunstockguru @anshulbahl21
🧵
1/ Import Duty
On Raw Material:
-Natural latex liquid has 70%import duty
On Finished Products:
-Latex products have only 5% and gloves 0% under the FTA with ASEAN countries.
On Raw Material:
-Natural latex liquid has 70%import duty
On Finished Products:
-Latex products have only 5% and gloves 0% under the FTA with ASEAN countries.
2/ Duty Effects
-This has led to rising imports, hitting the domestic industry badly.
-The inverted duty structure has forced many rubber product manufacturers to turn traders of rubber goods and stop manufacturing because products have become uncompetitive.
-This has led to rising imports, hitting the domestic industry badly.
-The inverted duty structure has forced many rubber product manufacturers to turn traders of rubber goods and stop manufacturing because products have become uncompetitive.
3/ Industry
-India’s rubber thread market is being met through imports.
-This is equivalent to more than 5000 tonnes of centrifuged latex of consumption removed from the domestic latex sources.
-India’s rubber thread market is being met through imports.
-This is equivalent to more than 5000 tonnes of centrifuged latex of consumption removed from the domestic latex sources.
4/ Non-Competitive
-The reduction in export benefits for the industry by curtailing the export obligation period for advance license to six months against 18 months has also made Indian rubber products noncompetitive in the global market.
-The reduction in export benefits for the industry by curtailing the export obligation period for advance license to six months against 18 months has also made Indian rubber products noncompetitive in the global market.
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