New Delhi – India’s Finance Ministry has slashed the basic customs duty on MDI, cutting it by 2.5 percentage points. It is part of a package of duty reduction on input materials that was announced by the government in its budget.
The duty on MDI falls from 7.5% to 5%. The exemptions on import duties on raw materials for apparel and footwear may lead to a greater proportion of Indian-made products such as shoes and clothing being sourced by global brands, in line with the country’s flagship “Make-in-India” initiative.
Import duty on MDI had been increased from zero to 7.5% back in 2021.
