Over 6,000 small and medium rubber units (SMEs) scattered in different clusters across the country expect a correction in inverted duty structure in the upcoming Union Budget.
India levies amongst the highest duties on import of raw materials and one of the lowest duties on import of finished rubber goods. Given the Government’s emphasis on domestic manufacturing, it is critical that the inverted duty is corrected.
We are confident that the Finance Minister will take cognisance of the same in the Budget”, Mohinder Gupta, President, All India Rubber Industries Association (AIRIA), said in a statement.
He said that many small rubber goods manufacturers have turned to trading of rubber goods as they could not compete with cheaper imports.
According to AIRIA, the finished products can be easily imported as the import duty on rubber products is between 0 and 10 per cent, while the duty on raw materials for rubber industry is between 5 and 70 per cent.
AIRIA, quoting Capexil data, pointed out that the import duty on raw materials is highest in India when compared to other rubber product manufacturing countries.
On the other hand, the import duty on finished rubber goods is lowest in India facilitating import of cheap goods to India.
– The Hindu
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