The government has imposed a six-month minimum import price on suspension-grade PVC to curb dumping and encourage domestic manufacturing
India consumes around 4.7 million tonnes of PVC annually but produces only 1.7 million tonnes, making imports necessary to meet demand
Restricting lower-priced imports gives domestic producers greater pricing power, increasing PVC costs across the manufacturing value chain
Costlier PVC will raise the price of pipes, cables and fittings used in housing, irrigation, drinking water and infrastructure projects
Thousands of small manufacturers that convert PVC into finished products could see margins squeezed and export competitiveness weakened
The long-term solution is to expand domestic PVC capacity by improving feedstock availability and strengthening petrochemical infrastructure, not restricting imports