New Delhi, July 22 (IANS) Stakeholders in the foundry business are strongly opposed to the recent 2.5 percent duty on import of metal scrap and say it is thwarting India's $100 billion export market in automobile and auto components.
GS Agarwala, chairman, Energy & Environment Committee of Institute of Indian Foundrymen (IIF), said: "Even though the levy was small, the Indian manufacturer was not able to compete on a level playing field with his counterparts in Thailand and Malaysia as semi-finished and finished goods produced from scrap when exported from Thailand and Malaysia are allowed duty-free imports."
"As a result, India's $100 billion export market in automobiles and auto components was shifting to China and Thailand. Hence, it was necessary to immediately roll back the duty of 2.5 percent on metal scrap to regain the lost export market in automobiles and auto components," he added while speaking at a roundtable conference organised by IIF here.
Agarwala mentioned that for economic resurgence, it was essential to increase foundry production substantially from the present 9.5 million tonne (mt) to at least 30 mt in the next five years.
India's foundry production was about 9.5 million tonnes per annum compared to China's foundry production of about 41 million tonnes. The big gap has helped China in achieving production of 17 million cars compared to India's production of only three million cars.
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