Centre rolls out relief measures for industry, consumers amid Iran war disruptions

NEW DELHI, (IANS): The Centre has rolled out a series of relief measures aimed at shielding Indian industry and consumers from the adverse economic impact of the Iran war, which has disrupted supply chains and hit exports.

The Finance Ministry has outlined steps spanning customs duty cuts for key raw materials, export incentives, fuel price controls, and financial support mechanisms, with a focus on ensuring stability across key sectors.

The Government has allowed Special Economic Zone (SEZ) units to sell goods in the domestic market at concessional customs duty rates. Earlier, such sales attracted full import-equivalent duties, which have now been reduced to approximately 5 to 12.5 per cent to support manufacturing units.

Customs duties on critical petrochemical products have been reduced in a targeted move to offset supply disruptions due to the West Asia conflict. The relief is expected to benefit sectors including plastics, packaging, textiles, pharmaceuticals, chemicals, and auto components.

A war risk pool or Bharat P&I fund is under consideration by the Department of Financial Services to mitigate shipping and trade risks.

The government has also limited the pass-through impact of a 25 per cent increase in aviation turbine fuel (ATF) to keep airfare surcharges in check.

Excise duty on petrol and diesel has been cut by Rs 10 per litre to prevent a spike in retail fuel prices for consumers.

A RELIEF scheme under the Export Promotion framework has been introduced, offering credit cover worth Rs 497 crore, with a focus on supporting MSMEs which provide large-scale employment in the country.

RoDTEP (Remission of Duties and Taxes on Exported Products) benefits have been restored to 100 per cent, including for the labour-intensive textiles sector.

The government is also working on additional banking and financing support measures, with more announcements expected soon.

The Finance Ministry indicated that these measures are part of a broader, calibrated response to evolving geopolitical risks, adding that further steps may be announced as the situation unfolds.