FTAs are an inescapable reality and the Indian chemical industry is doing its best to minimise damages.
India's proposed FTA with the Gulf Cooperation Council (GCC) countries is a matter of concern given the region's access to cheap feedstocks. But it appears the government is in a mood to allay these concerns.
Representatives from India and GCC are due to meet next month to take forward the proposed FTA. And according to a news report, India is likely to seek safeguards for its chemical and petrochemicals industry at the meeting to protect domestic players.
Duty protection will also be needed if the government is serious about implementing its plan for mega refining and petrochemical centres. Foreign investors are being wooed to set up shop at these centres, called PCPIRs. But if the Indian market is to be opened to the GCC countries, investors might as well look at investing in that region rather than in India.
Comments (1)
I hope this will not happen. Indian government need to take care of Idian petrochemical industry. Governmetns of gulf region are providing huge subsidised feedstock to petrochemical manufacture. Petrochemical manufacturers in middle-east are getting LPG at 1/4 rate as compared to Indian manufacturer. Considering this huge difference cost of manufacturing petrochemical in middle-east is very low (in many case it is less than half).
By creating FTA with heavily subsidized region is Indian government trying to kill Indian manufacturers? This is also increase net import of India from these country.
Posted by Pranay | April 3, 2007 8:43 AM
Posted on April 3, 2007 08:43