The government has exempted import tariffs on some commodities such as coking coal and ferronickel used in the steel industry. This will reduce the cost and price of the domestic industry. Tariffs on iron ore exports have also been raised to 50% and some steel brokers have been raised to 15% to increase domestic availability.
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Import tariffs on ferronickel, coking coal and PCI coal have been reduced from 2.5%, and import tariffs on coke and semi-coke have been reduced from 5% to zero. The export tax on iron ore and concentrate has been raised from 30% to 50% and a 45% tariff has been levied on iron pellets.
Taxes on ingots, blocks, or other major forms of pig iron and Spiegel. Flat-rolled iron or non-alloy steel products, width 600 mm or more, hot rolled, Unplated, uncoated. Flat-rolled iron or non-alloy steel products from 600 mm wide, cold-rolled (cold-rolled), unclad, clad or coated flat-rolled iron or non-alloy steel products from 600 mm wide, clad, clad or coated Things have now been raised from “zero” to 15%.
In addition, a 15% tariff was levied on flat-rolled stainless steel products with a width of more than 600 mm, other steel bars and stainless steel bars. Angles, shapes and profiles of stainless steel; rods and rods, hot rolled irregularly wound coils of other alloy steels.
Nirmala Sitharaman, the present finance minister, said tariff changes on commodities and steel brokers would “lower prices.”
In addition, import taxes on raw materials used in the plastics industry have been reduced, reducing domestic manufacturing costs. Import tariffs on naphtha has been reduced, reducing domestic manufacturing costs. Import tariffs on naphtha has been reduced from 2.5% to 1%, while tariffs on propylene oxide have been halved to 2.5%. Import duties on polymers made of
Vinyl chloride (PVC) has been reduced from the current 10 percent to 7.5 percent. In announcing a reduction in tariffs on plastics.
Sitaraman said tariffs on raw materials and brokers would be reduced if import dependence was high.
“This will reduce the cost of the final product,” she tweeted. Also said the government has decided to reduce tariffs on raw materials and intermediates for India’s highly import-dependent plastic products. This will reduce the cost of the final product, the minister said.
Earlier this month, India announced a ban on wheat exports as grain prices soared in the heat of northern India.
Apart from this, the government is also taking steps to improve the availability of cement. The minister added that this would be done through better logistics to reduce cement costs and that orders would be placed on Saturday itself. On Friday
Sitaraman expressed concern about the potential impact of rising construction costs on infrastructure creation as the government calls for an infrastructure investment-led economic recovery.
“Today, the world is in a difficult time. Even when the world is recovering from the Covid 19 pandemic, the conflict in Ukraine has caused supply chain problems and a shortage of various commodities. It causes inflation and financial difficulties in many countries. ”
Retail price inflation measured by Consumer Price Index (CPI) and inflation measured by the wholesale price index (WPI) have been surging in recent months mainly driven by a surge in global commodity price.
AMRG & Associates Senior Partner Rajat Mohan said steep reduction in import duty on these products would help arrest high inflation.
“Global economies are failing due to rising debt and high inflation. In light of collapsing weak developing economies due to high inflation, the Indian government has taken multiple measures to provide relief from the high prices of petrol, diesel, coal, iron, steel and plastic,” Mohan said.