AIRIA asks for promotion of Rubber products exports
Author(s): City Air NewsMr Mohinder Gupta, President AIRIA. Ludhiana, November 26, 2015: All India Rubber Industries Association (AIRIA) has asked the Government for measures to enhance exports of rubber industry from India. “Rubber...
cityairnews
Nov 26, 2015 12:30
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Mr Mohinder Gupta, President AIRIA.
Ludhiana, November 26, 2015: All India Rubber Industries Association (AIRIA) has asked the Government for measures to enhance exports of rubber industry from India.
“Rubber sector has been an active participant in India’s export drive. Rubber exports from the country have been increasing in double digits for several years and currently the export turnover of the Rubber industry is over Rs 17000 crore. However lately the export growth momentum has slowed down” said Mr Mohinder Gupta, President AIRIA.
The export potential of rubber industry is immense despite the slowdown in world markets. The exports of rubber products can be doubled if certain policy enablers are in place. Inverted duty needs to be corrected urgently by reducing import duty on raw materials, AIRIA has stated.
According to AIRIA, the finished products can be easily imported in India as the import duty on rubber products is between 0 to 10%, while the duty on raw materials for rubber industry is between 5% to 70%.
India is deficient in both natural rubber and synthetic rubber production, two important raw materials for rubber industry. Import of raw materials is inevitable. Much higher import duties on raw materials such as natural and synthetic rubbers than on finished rubber goods has affected the growth of rubber sector in India, stated AIRIA.
“India levies amongst the highest duties on import of raw materials and one of the lowest duties on import of finished rubber goods. Given Modi Government’s emphasis on domestic manufacturing, it is critical that the inverted duty is corrected”, added Mr Gupta.
Many small rubber goods manufacturers have turned to trading of rubber goods as small manufacturers can’t compete with cheaper goods imported from China and other countries leading to loss to exchequer and also loss of employment.
“Not only import duty on raw materials is higher than finished products, Govt levies anti-dumping and safeguard duty on raw materials such as Rubber Chemicals and Carbon Black which affects cost competitiveness of the industry”, added Mr Gupta.
Rubber industry has also asked for creation of a separate export promotion council for rubber sector in India.
Date:
Thursday, November 26, 2015
