Delhi (India), 2nd Feb 2023: The Indian Union Budget for 2023 has seen a significant rejig in customs duties with a clear-cut focus on promoting the ‘Make in India’ initiative. The Finance Minister announced a series of measures aimed at boosting domestic manufacturing and reducing the country’s dependence on imports.
One of the key announcements in this regard was the reduction in customs duty on various raw materials, components, and capital goods, with the objective of reducing the cost of production for domestic manufacturers. The government has also increased the customs duty on a range of finished products, including electronics, textiles, and luxury goods. The move is expected to make imported goods more expensive, thereby providing a fillip to domestic production and boosting the competitiveness of Indian manufacturers.
The budget also announced measures aimed at encouraging the manufacture of electric vehicles in India. The customs duty on import of lithium-ion batteries, which are an essential component of electric vehicles, has been reduced to promote their manufacture within the country. The government has also announced a scheme to provide financial support for the establishment of battery-making units in India.
In a bid to promote the growth of the micro, small and medium enterprises (MSME) sector, the government has also announced a reduction in customs duty on a range of inputs used by these enterprises. The move is expected to provide a boost to the MSME sector, which is a key contributor to the country’s economic growth and employment generation.
In conclusion, the customs rejig in the 2023 budget is a clear-cut signal of the government’s intent to promote ‘Make in India’ and boost domestic manufacturing. The measures announced are expected to provide a fillip to the domestic production, reduce the country’s dependence on imports and create new employment opportunities. The budget is being widely hailed as a forward-looking and growth-oriented one, which will pave the way for a more self-reliant and competitive India.
