NEW DELHI: Indian poly vinyl industry can attract investment of about Rs 20,000 crore over 5-7 years if import duty of PVC & caustic soda is increased from 7.5 per cent to 10 per cent, says a FICCI report.

“Today, close to 50 per cent of the demand for PVC in the country is met by imports. When the country’s goal today is to ‘Make in India’, increased imports and lower manufacturing levels contribute to loss of potential employment and widening the current account deficit,” the report said.

Indian import duties on Poly Vinyl Chloride (PVC) are lower than those in the developed world and in the ASEAN region.

Imports of PVC, which were less than 5 per cent of the country’s demand 10 years ago, are now at almost 50 per cent and growing rapidly every year and are expected to reach to USD 3 billion in few years.

Therefore, the import of PVC, which was less than 5 per cent of the country’s demand 10 years ago, is now at almost 50 per cent and is growing.

The PVC industry in India has historically been driven by agriculture till 2000. Thereafter, the main driver for PVC consumption has been infrastructure, for instance, pipes and fittings.