Industry hails govt's duty waiver on petrochemicals amid conflict

A day after the Central government announced that duties on key petrochemical products will be waived off for enabling timely movement amid the West Asia conflict, industry leaders have welcomed the government's proactive approach to ease the stress of supply-chain disruptions.

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Pharma Industry Applauds Move

The Indian Pharmaceutical Alliance has stated the Centre's decision to waive duties on key petrochemical products. Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance, said, "The ongoing West Asia conflict is having an impact on energy supplies, freight costs and the timely movement of products. In this difficult situation, we appreciate the Government of India's proactive efforts to mitigate potential supply-related disruptions. The setting up of Empowered Committees of Secretaries, along with continuous review and coordination among all stakeholders, is important."

"The industry also welcomes the restoration of RoDTEP (Remission of Duties and Taxes on Exported Products) to its previous level, as well as the waiver of duty on select products. Our primary focus remains on ensuring the uninterrupted supply of medicines, which is critical to public health and health security", he said further.

Relief for Medical Consumables Manufacturers

Himanshu Baid, Managing Director, Poly Medicure Ltd, welcomed the "timely" step. He said that raw materials, like Polycarbonate, PVC resin and others, which have been exempted, "form the backbone of medical consumables" which will provide a much-needed relief.

"The duty waiver on key petrochemical inputs is a welcome and timely step. The industry expresses its sincere appreciation to the Government of India, especially the Ministry of Finance, Department of Pharmaceuticals and the Ministry of Commerce & Industry for this support. Raw materials such as Polypropylene, ABS, Polycarbonate, and PVC resin form the backbone of medical consumables manufacturing, and their exemption provides much-needed relief to domestic manufacturers, especially MSMEs," he said.

"Additionally, the recent reversal of the earlier 50% reduction in RoDTEP rates is a positive and encouraging move. It will significantly enhance the competitiveness of the Indian medical devices industry on the global stage and support export growth," he added.

Boost for Packaging and Exports

Nikkhil K Masurkar, CEO of ENTOD Pharmaceuticals, also welcomed the step, adding, "The duty waiver on key petrochemical inputs is a positive step for the pharmaceutical sector, as materials such as Polypropylene, Polyethene, PVC and PET form the backbone of pharmaceutical packaging, sterile delivery systems and drug-device combinations. Rationalising input costs supports quality, supply continuity and affordability of medicines."

He further praised the restoration of RoDTEP rates, which he said would strengthen export competitiveness, adding, "The restoration of RoDTEP rates further strengthens export competitiveness and supports India's position as one of the world's most cost-efficient producers of high-quality medicines". (ANI)