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Purified Terephthalic Acid is one of the common chemical products that are used for the making of various types of polyester products. It is a very useful and impactful organic compound that is utilised for the creation and synthesizing of polyethene terephthalate. The main “Objectives of the abolition of importing Purified Terephthalic Acid from foreign countries” is to make the pricing and budgeting of the “Purified Terephthalic Acid” less expensive. These chemical compounds get exported from the foreign land and thus the pricing of the “Purified Terephthalic Acid” gets pricier and the importers have to pay a large amount in importing the products to India.
Objectives of the abolition of importing Purified Terephthalic Acid from foreign countries
Monetisation and budgeting for the country’s products are essential as it promotes the maintenance of the country’s finances at a place. However, India is a land where there is a huge product of various polyester materials ranging from appliances, general metal, automotive, coil coating and industrial maintenance. The basic allocation of “Purified Terephthalic Acid” is along with the combination of the “Eastman NGP Glycol” in the polyester coating powder for coating resins.
The range of the importing duty is scary and very harsh on the pocket. It usually ranges between 27$ to 160$ for 1000kg of the product, which is a huge amount. However, as there is a need for the material in the Indian market and has created a huge economic growth in these sectors, the government of India has strategies to focus on the importing price of the “Purified Terephthalic Acid”. The imposing of the duty on PTA from the countries like Malaysia, Thailand, China, Indonesia, Taiwan, Korea, and Iran highlight ban on raw materials imported. Thus, the “Objectives of the abolition of importing Purified Terephthalic Acid from foreign countries” was the removal or withdrawal of the “Purified Terephthalic Acid” imposition. The imposition of the anti duty on “Purified Terephthalic Acid” resulted in the international market reducing the cost by 30$ for 1000kg of products.
Need for Abolition
The “Need for Abolition” of the “anti-dumping duty” on the import of “Purified Terephthalic Acid” was announced in the budgeting for 2020. The main reason for this was the removal of anti duty. However, there are alternative options available for the “Purified Terephthalic Acid” to “Mono Ethyl Glycol”. It is a raw material that is used for the manufacturing of polyester. However, “Mono Ethyl Glycol” is another material that is under the scrutiny of the “Anti-dumping duty”. Easy availability of the “Purified Terephthalic Acid” is something that is desirable at the competitive market pricing. The textile industry in India is believed to have immense potential that can be utilized in bringing back a larger amount of economic growth in the country. Depending on the origin of the country, there can a huge amount of shortage noticed in the country, which is an immense source of loss for the worker with “Purified Terephthalic Acid”. Thus, the government has specifically imposed a duty on the product during the budget planning for 2020.
Impact of the Abolition
The most critical impact of the abolition was employment. As there is the demolition of the pricing of the “Purified Terephthalic Acid” it can allow the generation of more employees in the textile sector of India. The other impacts of the “Objectives of the abolition of importing Purified Terephthalic Acid from foreign countries” are:
- Enhancing global competitiveness
- Setting standardised pricing
- Boost for the domestic user.
Global competitiveness can be attained through the implementation of the duty and inclusion of the cheaper imports allowing the growth of the textile industry. As “Purified Terephthalic Acid” is critical incorporation to the yarn and fibre industries in India. The decision regarding the imposition of the duty was taken by “The Directorate General of Trade Remedies” by India.
Conclusion
Due to the excessive demand and need for the “Purified Terephthalic Acid” in the Indian market, there is a huge amount of expense made on the importing of “Purified Terephthalic Acid” to India from the foreign countries. The “Objectives of the abolition of importing Purified Terephthalic Acid from foreign countries” was to ensure less expense for buying or importing of the chemical products to India. Increasing the market for domestic growth was also one of the crucial reasons for the imposition of the budget by the central government of India.
