India cuts customs duty on crude oil and petroleum products
On June 24th, the Indian government’s Empowered Group of Ministers slashed the customs duty on crude oil and other petroleum products, which should result in the price reduction of synthetic fibers. “This will definitely benefit the textile industry,” said J. Thulasidharan, chairman of the Southern India Mills Association (SIMA). In a statement released on June 25th, Thulasidharan hailed the slashing of the customs duty and the reduction in the central excise on diesel. The reduction should enhance investments in the technical textiles sector in India.
There have been severe and widespread criticisms by consumer groups, industrial associations such as SIMA and opposition parties on the price hikes in kerosene, diesel and liquefied petroleum gas, the basic fuel products that Indian consumers use on a daily basis. It is anticipated that the synthetic fiber manufacturers in India will be able to pass on the duty reduction benefits to the Indian textile industry.
