The Centre has unveiled a series of targeted relief measures aimed at cushioning Indian industry and consumers from the economic fallout of the ongoing conflict in West Asia.
The Finance Ministry has outlined steps spanning customs duty cuts, export incentives, fuel price controls, and financial support mechanisms, with a focus on ensuring stability across key sectors.
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Here's a look at the key measures announced by the government:
Finance Ministry Initiatives:
- India has allowed Special Economic Zone (SEZ) units to sell goods in the domestic market at concessional customs duty rates.
- Earlier, such sales attracted full import-equivalent duties, which have now been reduced to approximately 5%–12.5% to support manufacturing units.
- Customs duties on critical petrochemical products have been reduced in a targeted move to offset supply disruptions due to the West Asia conflict.
- The relief is expected to benefit sectors including plastics, packaging, textiles, pharmaceuticals, chemicals, and auto components.
- A war risk pool or Bharat P&I fund is under consideration by the Department of Financial Services to mitigate shipping and trade risks.
- The government has limited the pass-through impact of a 25% increase in aviation turbine fuel (ATF) to keep airfare surcharges in check.
- Excise duty on petrol and diesel has been cut by Rs 10 per litre to prevent a spike in retail fuel prices.
Commerce Ministry Measures:
- A RELIEF scheme under the Export Promotion framework has been introduced, offering credit cover worth Rs 497 crore, with a focus on supporting MSMEs.
- RoDTEP (Remission of Duties and Taxes on Exported Products) benefits have been restored to 100%, including for the textiles sector.
- The government is also working on additional banking and financing support measures, with more announcements expected soon.
The government is also planning to expand strategic petroleum reserves to strengthen energy security amid global uncertainties.
The finance ministry indicated that these measures are part of a broader, calibrated response to evolving geopolitical risks, adding that further steps may be announced as the situation develops.
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