The government remains assessing the effects of US tariffs at the country’s chemicals and petrochemicals industry. “We are still studying. We are in contact with the industry and looking to determine how it will effect our industry,” news corporation PTI quoted Chemicals and Petrochemicals Secretary, Ms. Nivedita Shukla Verma as announcing at the sidelines of a brain storming session held in New Delhi recently.
US President Donald Trump on April 9 decreased a planned 26% reciprocal tariff to 10%, simply one week after declaring the higher rate on April 2. The authorities will decide measures after discussions with industry players, Ms. Verma adds.
According to industry records, chemicals comprise approximately 18% of India’s total exports to the USA, with FY24 exports valued at round $5.7-billion. India Ratings and Research calculated the tariff hike could reduce chemical exports by way of $2-7billion in FY26. Indian petrochemical exports to America, worth about $4billion in 2024, may additionally see decreased demand, even though some petroleum oil sub-segments might be protected, softening the effect.
The US tariffs on Chinese chemicals have also sparked concerns about dumping, as Chinese firms dealing with eco nomic slowdown and surplus capability may flood India and other worldwide markets with less expensive products, probably miserable global chemical costs. Earlier, at the brainstorming session, Ms. Verma emphasized fostering long-term development of the Indian chemical sector, along with discussions on infra structure development particularly tailored for the chemical industry.
