Page Loader
India to hike import duties on smartphones, electronics, etc.: Report

India to hike import duties on smartphones, electronics, etc.: Report

Jan 19, 2021
07:11 pm

What's the story

India is reportedly considering a hike in import duties by 5-10% on smartphones, electronic components, and appliances among more than 50 items in the upcoming Union Budget. The move is aimed at furthering Prime Minister Narendra Modi's self-reliant India campaign, sources told Reuters. The Union Budget for the fiscal year 2021-22 will be presented on February 1. Here are more details.

Details

Government targeting additional revenue of over Rs. 2 lakh crore

The central government is considering hiking import duties on over 50 items, Reuters reported citing three government sources, who chose to remain anonymous. One of the sources said the government was seeking to target additional revenue of about Rs. 2 lakh crore-Rs. 2.1 lakh crore ($2.7 billion-$2.8 billion). This would help shore up revenue as the economy has been struggling amid the coronavirus pandemic.

Items

Furniture, electronic vehicles could see hiked duties

According to Reuters, two of the sources said the duty hikes could impact furniture and electric vehicles, which could affect the business of Swedish furniture maker Ikea and American carmaker Tesla. Officials did not reveal the amount of hike on these items. Both firms have previously expressed concerns about the existing steep duties. Tesla is planning to launch its cars in India this year.

Information

Duties on fridges, ACs to also be hiked

Other items on the list that are set to attract hiked import duties reportedly include appliances such as refrigerators and air conditioners, three of the sources told the news agency. Finance Ministry officials did not immediately respond to Reuters' queries.

Budget

Parliament's Budget session to begin on January 29

Finance Minister Nirmala Sitharaman will unveil the government's annual Union Budget for FY2021-22 on February 1. The next fiscal begins on April 1. The first phase of the Parliament's Budget session begins on January 29 with President Ram Nath Kovind's address and end on February 15. The second phase will run from March 8 to April 8.