Government Offers Relief to Export Companies; Import Duties Waived

The central government has taken another significant step to support domestic export companies facing challenges. It has completely waived import duties on key petrochemical products imported by these companies until the end of June. This move is expected to benefit sectors such as pharmaceuticals, chemicals, textiles, plastics, packaging and automobile components manufacturing. The decision aims to protect domestic exporters from the impact of the West Asia crisis. However, it is estimated that the government may incur a revenue loss of around ₹1,800 crore due to this exemption. Notably, this announcement comes shortly after permitting export units in Special Economic Zones (SEZs) to sell up to 30% of their production in the domestic market.

Meanwhile, the government has also taken steps to curb the misuse of Free Trade Agreements (FTAs) in the import of gold, silver and platinum jewellery. The Director General of Foreign Trade (DGFT) has issued orders in this regard, stating that the new regulations will come into immediate effect. These restrictions will apply irrespective of the scale of imports.

It is believed that some traders were exploiting the India-ASEAN FTA by importing gold, silver and platinum in the guise of jewellery from countries like Thailand and Indonesia at lower costs, thereby evading taxes on a large scale. The government has introduced these stricter measures to prevent such practices and ensure better regulation of imports.