The Association of Indian Forging Industry (AIFI) has expressed its opposition to the appeal of Indian steel companies to increase the country’s import duty from 5% to 15%. The AIFI claims the move would lead to a rise in prices that would harm the competitiveness of Indian auto-component manufacturers and lead to job losses in the industry, which is already experiencing difficulties. The group also claims the duty hike would be inflationary and harm India’s overall economy.
THE AIFI reports that Indian manufacturers of both passenger and commercial vehicles have reduced production. Late last year, the industry shifted from six-day workweeks to four- or five-day workweeks. Suppliers of parts for heavy and medium commercial vehicles have been most affected by the downturn. In addition, reductions in export orders – especially to the U.S. and Europe – exacerbate the problem.
AIFI Opposes Increase in Steel Import Duty
February 25, 2009