Union Budget 2021 | Centre may increase customs duty on certain components to boost Make In India initiative: Report
New Delhi | Jagran Business Desk: The Union Budget 2021 will be presented by Finance Minister Nirmala Sitharaman on February 1 amid the coronavirus pandemic which has led to an unprecedented economic crisis in the country and pushed the economic growth to a record low. Almost all the sectors and industries are hoping high from this year's budget as it will be first after pandemic hit the country and upset the normal functioning of every other sector.
Amid the pandemic, the government had pushed the Atmanirbhar Bharat (self-reliant India) initiative and urged the countrymen to become 'vocal for local'. Now in order to boost the Make in India initiative, a report by news agency ANI quoting government sources, suggested that the government is mulling to increase the customs duty on certain parts of various components. However, no final decision has been taken yet and deliberations are still going on.
Last year while presenting her second Budget, Sitharaman had announced customs duty hike on a range of items including toys, furniture, electronic goods, footwear, freezers, refrigerating equipment, grinders and mixers, headphones and earphones, colour TV and chargers.
Customs duty on footwear was hiked from 25 per cent to 35 per cent, toys have seen an increase in duty from 20 per cent to 60 per cent, while customs duty was doubled on freezers, grinders and mixers. Announcing the customs duty hike on February 1, 2020, Sitharaman had said, Centre's policy of Make in India has started giving dividends. India is now making world-class goods and exporting such products.
"Customs duty is being reduced on certain inputs and raw materials while being revised upward on certain goods, which are being made domestically," Sitharaman had said.
Rajat Bose, Partner, Shardul Amarchand Mangaldas and Company, as quoted by news agency ANI, said that trend has been that the central government usually in the last four-five years is increasing the customs duty on certain items. However, he added that the imports did not reduce as such.
"So, I think that it will be there at the back of the mind of the government. I believe that they would still continue to increase customs duty on raw material components. They might look at sectors such as automobile, consumer electronics and fast-moving consumer goods," Bose added.
(With ANI Inputs)
Posted By: Talibuddin Khan