New Delhi: India is preparing to reduce import duties and, if needed, regulate exports to ensure enough supply of essential goods within the country, as global trade faces disruption due to the ongoing Iran war, according to a Reuters report.
Supply Chains Under Pressure
The conflict in West Asia has disturbed global supply chains, affecting the movement of key goods such as energy, fertilisers, food items and industrial inputs. Rising tensions have increased freight costs and caused delays, making imports more expensive and less reliable.
For India, which depends on imports for many critical sectors, this situation has raised concerns about inflation, manufacturing slowdown and food security. The government is now focusing on protecting domestic supply and reducing risks.
Govt Plans Duty Cuts And Export Curbs
To manage the situation, India is considering cutting import duties to make essential goods cheaper and easier to access. At the same time, the government may regulate exports of certain items to ensure enough availability within the country.
This move shows a shift in policy, where ensuring domestic stability is becoming more important than free trade during times of global crisis.
Support For Exporters Continues
Despite the disruptions, the government has extended support for exporters. It recently extended the RoDTEP (Remission of Duties and Taxes on Exported Products) scheme by six months, till September 30.
The scheme helps exporters by refunding taxes and duties that are not covered under other programmes. This support is aimed at helping exporters remain competitive even as global trade conditions remain uncertain.
Relief On Petrochemical Imports
In another step, the government has removed customs duty on several key petrochemical products until June 30. This decision is expected to reduce costs for industries that rely on these inputs and ease supply pressure.
Balancing Trade And Domestic Needs
The current situation highlights how geopolitical tensions are changing global trade patterns. Countries are now focusing more on securing their own supply chains.
India’s approach reflects a balance between supporting exporters and ensuring that domestic markets remain stable during uncertain times. The government’s measures aim to control inflation, support industries and maintain steady availability of essential goods.
