India is considering continuing duties on imports of phthalic anhydride, with the proposed extension potentially keeping the trade measure in place for another five years.
Phthalic anhydride is an important industrial chemical used in the manufacture of plasticisers, unsaturated polyester resins, alkyd resins, dyes and other chemical products. Changes in import duties can therefore have implications for manufacturers and downstream industries that depend on the material.
The proposed continuation is being considered in the context of protecting domestic producers from potential injury caused by imported material. Maintaining the duties could provide greater stability for Indian manufacturers while limiting the impact of lower-priced imports.
For importers and downstream users, however, continued duties could affect procurement costs and sourcing decisions. Companies relying on overseas supplies may need to assess the availability and pricing of domestic alternatives as the government reviews the measure.
The final decision will depend on the outcome of the relevant review and the government’s assessment of domestic industry conditions, import trends and the interests of downstream consumers.
If extended, the measure would provide a longer period of trade protection for the domestic phthalic anhydride industry while maintaining additional costs on affected imports.
The development highlights India’s continuing use of trade-remedy measures to address concerns surrounding imported industrial chemicals and support domestic manufacturing.