FIEO hails decision of reduction in central excise duty on petrol and diesel
Reduction in import duty on key raw materials and increase in export duty on iron and steel intermediates to bring down the domestic prices, impart competitiveness to manufacturing & exports & push value-added exports from the country: Dr A Sakthivel, President, FIEO
Ludhiana, May 22, 2022: Hailing the decision of reduction in central excise duty on Petrol & Diesel, reduction in import duty on the raw material of steel & plastic and increase in export duty on iron ore & steel intermediates, Dr A Sakthivel, President, FIEO said that these measures will bring down the domestic prices of key inputs thereby softening inflation. This will also add to the competitiveness of the manufacturing and export sector and will further push value-added exports from the country.
Dr A Sakthivel said that these proactive measures will also ease the logistics pressure and bring down the freight bill of the country as in some cases the same raw material was being exported from the country and subsequently being imported by the downstream users.
He thanked the Commerce & Industry Minister and the Finance Minister for taking these bold and timely measures responding to the demand of the industry, particularly the MSMEs.
However, Dr Sakthivel said that similar measures need to be taken for some of the textile inputs as the rising prices are making it extremely difficult for exports of value-added apparel sector to meet the increasing competition. Export Duty on Cotton and duty-free import of Cotton Yarn will help in domestic availability of these inputs at competitive cost.