West Asia Crisis Spurs Government to Explore Options for Boosting Induction Heater Production Capacity
Government Holds Discussions to Boost Induction Heater Production Amid LPG Concerns
The Indian government held discussions on Friday to encourage companies to increase production of induction heaters and compatible utensils, driven by rising demand due to concerns over LPG availability following the West Asia crisis. The crisis has disrupted the movement of ships carrying oil and gas through the Strait of Hormuz, prompting people to rush to buy induction heaters and compatible utensils.
The meeting, chaired by Commerce and Industry Minister Piyush Goyal, was attended by senior officials, including Power Secretary Pankaj Agarwal, Director General of Foreign Trade (DGFT) Lav Agarwal, and Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Amardeep Singh Bhatia.
The demand for induction cooktops and electric kettles has surged in the wake of cooking gas supply concerns due to the war in West Asia, according to industry players. Sales of these goods are increasing, with them being sold as hot cakes.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
To maintain the supply chain in other sectors, the government on Thursday exempted the import of critical petrochemical products from customs duty for three months till June 30, giving relief to sectors like pharmaceuticals, chemicals, and textiles. This move will ensure supply stability amid the ongoing West Asia crisis.
The duty exemption will benefit sectors dependent on petrochemical feedstock and intermediates such as plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components, and other manufacturing segments. According to estimates, the duty exemption will cost the exchequer Rs 1,800 crore.
| Sector | Benefit |
|---|---|
| Pharmaceuticals | Exemption from customs duty on critical petrochemical products will benefit the pharmaceutical sector |
| Chemicals | The duty exemption will help maintain supply chain stability in the chemicals sector |
| Textiles | The duty exemption will benefit the textiles sector, which relies on petrochemical feedstock and intermediates |
Disruption in shipping routes amid the West Asia war has raised concerns over imports of fertiliser, crude oil, and natural gas. India is a major importer of fertiliser and petroleum. Global crude prices have risen by almost 50 per cent since the United States and Israel launched military strikes against Iran on February 28, triggering sweeping retaliation from Tehran.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
More in Economy
Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
MoSPI Releases Uniform Norms for DDP Estimates with 2022-23 Base Year
