Imports a threat, says Ruia

BS reports

Pawan Kumar Ruia, chairman of Dunlop India, said today that the tyre industry would be hit by the reduction of peak customs duty to 10 per cent as it would intensify competition in the low-margin, high-volume tyre industry.

Cheap imports would flood the market and things would get difficult for the Indian tyre industry because excise duty on tyres had not been reduced despite several representations from the industry.

There had been a steep increase in natural rubber prices in the past three years but customs duty on imported natural rubber had not been reduced.

However, the damage would be partly compensated by lowered import duties on inputs like synthetic rubber, butyl rubber, carbon black, polyester tyre cord and styrene butadiene rubber.