India Trade Policy: India’s big trade move! A blow to America and Malaysia; What will benefit the country?
India Trade Policy: India has taken a major trade decision to protect its domestic industries and curb cheap imports. The Government of India has taken a major step to protect domestic manufacturing companies from cheap and overpriced imports from foreign markets. India on Friday extended the anti-dumping duty on normal butanol (n-butyl alcohol) imported from the US, Malaysia and South Africa for the next five years.
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The decision was taken after a final review by the Directorate General of Trade Redressal (DGTR). The DGTR concluded that if the duty is withdrawn, there could be a flood of dumped products back into the country, causing huge economic losses to Indian manufacturers.
What is Butyl Alcohol?
Butyl alcohol is a very important industrial chemical. It is widely used in the following industries:
In the manufacture of paints and coatings.
In the manufacture of solvents and plasticizers.
In the manufacture of various other chemical products.
Why was the anti-dumping duty increased?
The main objective behind raising this tax is to provide equal market opportunities to domestic companies. The decision will deter foreign companies from selling goods in India at artificially inflated prices.
Ministry of Finance issued a notification
On the recommendation of the DGTR, the Union Finance Ministry has issued a notification to continue these duties under the Customs Tariff Act. This new order replaces the earlier anti-dumping notification issued in April 2021.
The increased duty will be applicable on normal butanol imported from the US, Malaysia and South Africa, at country-specific and producer-specific rates. If not reviewed soon after this, the fee will remain in place for the next five years.
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