To boost the Make in India initiative, the Centre is considering increasing customs duty on certain parts of various Components. Discussion and deliberations on various proposals are still going on, but no final decision had been taken yet.
Union Finance Minister Nirmala Sitharaman will present Prime Minister Narendra Modi-led NDA government’s eighth budget on February 1 amid the Covid-19 pandemic and under the unprecedented economic crisis triggered by it. This time, the Central Government may increase the customs duty on certain components. Customs duty is being reduced on certain inputs and raw materials while being revised upward on certain goods, which are being made domestically.
The recent trend has been that the central government usually in the last four-five years is increasing the customs duty on certain items. However, the imports did not reduce as such. The Government might still continue to increase customs duty on raw material components. They might look at sectors such as automobiles, consumer electronics, and fast-moving consumer goods.
