India may reduce import duties and exports to ensure local supply

India's director of foreign trade announced on Thursday that it would reduce import duties or regulate exports to ensure adequate supplies at home for a number of?essential goods whose availability has been restricted due to the war in the Middle East. The conflict that began in February when the United States and Israel attacked Iran has closed the Strait of Hormuz. This is the usual route of about 20% of world oil. As a result of the conflict, energy costs and freight rates have risen and global supply chain are being put under severe strain.

Director General of Foreign Trade, Lav Agarwal, said that the Indian government is looking at reducing import?duties? on essential raw materials and other goods.

India could regulate exports, without specifying the goods most at risk. The authorities will maintain a watchlist of sensitive products to ensure timely implementation of any necessary measures. Agarwal said that the government, in conjunction with the revenue department is reviewing trade defense measures such as anti-dumping duties. Middle East conflict disrupted India’s gas supply, affecting the manufacturing sector in India, air travel, and shipping. New Delhi has reduced excise duty on petrol and diesel in order to protect consumers and reduce inflation. It also implemented'support measures' costing 18 billion rupees ($193million), including scrapping import tax on petrochemicals inputs used in plastics and pharmaceuticals production. Reporting by Nikunj Ohri, Nidhi vermal and YPrajesh; Editing and Barbara Lewis.

(source: Reuters)