Indian manufacturing associations and industry representatives are seeking rationalization of import duties on essential raw materials and intermediate goods ahead of the Union Budget 2027-28.

The representations come amid concerns that high and inconsistent customs duties are increasing manufacturing costs, particularly for MSMEs and downstream industries dependent on imported industrial inputs.

Among the proposals highlighted are reductions in basic customs duty on selected raw materials, including primary aluminium, aluminium scrap and graphite electrodes. Chemical manufacturers have also sought relief on important inputs such as methanol, acetic acid, phenol, toluene, acetone, ethylene dichloride and vinyl chloride monomer.

Industry representatives have further called for a predictable, multi-year customs duty framework instead of temporary exemptions, enabling manufacturers to plan procurement and production more effectively.

The India SME Forum has also sought faster GST credit refunds to improve working capital availability for manufacturing businesses.

The proposals are relevant to non-tyre rubber manufacturers using petrochemical derivatives, polymers, solvents, speciality chemicals and engineering materials. If accepted, rationalization of import duties could reduce input costs and improve the competitiveness of Indian rubber product manufacturers. However, these are industry representations and not implemented government policy changes.