New Delhi, Apr 23 (KNN) The government has announced a series of duty reductions and regulatory relaxations to support domestic industry and stabilise supply chains amid ongoing geopolitical disruptions in West Asia.
Relief for leather and footwear sector
In a key move, the Centre has reduced the Basic Customs Duty to zero on critical raw materials used in the leather and footwear industry, including Ethylene Vinyl Acetate (EVA), Polyvinyl Chloride (PVC), Polyurethane (PU) and Solid Bleached Sulphate (SBS).
It has also proposed suspending or removing anti-dumping duties on PVC-based resins, a step aimed at lowering input costs and improving competitiveness for manufacturers facing supply disruptions, reported The Economic Times.
Push for affordable electric cooking
The government is also considering a dual-pronged tax reduction strategy for induction cooktops to boost domestic manufacturing and promote energy-efficient cooking solutions.
The proposal includes lowering customs duties on key components used in induction cooktops and reducing Goods and Services Tax (GST) to 5 percent from the current 18 percent
The move is intended to make electric cooking more affordable while addressing demand-supply gaps in the sector.
The Ministry of Commerce and Industry has held consultations with the power ministry and industry stakeholders to assess immediate measures for stabilising prices and ensuring product availability.
Relaxation of quality control norms
To ensure uninterrupted supply of raw materials, the Department for Promotion of Industry and Internal Trade (DPIIT) is reviewing Quality Control Orders (QCOs) and has already relaxed five such norms related to electrical appliances.
Officials indicated that further relaxations may be considered on a case-by-case basis, depending on evolving industry requirements.
Broader regulatory measures
The government has also rolled out additional steps to ease supply constraints. It includes faster approvals and licensing under the Petroleum and Explosives Safety Organisation, expansion of gas infrastructure, processing of 467 applications for CNG and compressed biogas facilities and approval of new biogas cylinder filling and storage plants.
Since March, approvals have been granted for 41 such plants, with licences issued to 14 facilities.
Aim: Stabilise industry and supply chains
The combined fiscal and regulatory measures are designed to ensure steady availability of fuel, gas and industrial inputs, while cushioning domestic industries from rising global uncertainties.
The interventions come as businesses grapple with higher freight costs, volatile energy prices and supply chain disruptions linked to the West Asia crisis, prompting the government to adopt a more flexible and responsive policy approach
(KNN Bureau)
