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In a major move aimed at boosting domestic manufacturing and reducing input costs for industries, Finance Minister Nirmala Sitharaman announced a significant reduction in customs duties on a range of key products. The average customs duty has been slashed from 21% to 8%, marking a major relief for importers and manufacturers reliant on foreign raw materials.
Key Highlights of the Customs Duty Reduction
- Lower Input Costs: Industries such as electronics, automotive, and machinery will benefit from reduced import costs, making production more competitive.
- Boost to ‘Make in India’: By lowering tariffs on essential components, the government aims to strengthen domestic manufacturing while keeping finished goods affordable.
- Consumer Benefit: Cheaper imports could lead to lower prices for end consumers in sectors like electronics, appliances, and automobiles.
- Strategic Imports: Critical items like semiconductors, lithium-ion batteries, and certain chemicals will see duty cuts to reduce dependency on foreign suppliers.
Industry Reactions
Industry leaders have welcomed the move, stating that it will enhance India’s export competitiveness by lowering production costs. The Federation of Indian Chambers of Commerce and Industry (FICCI) and Confederation of Indian Industry (CII) have praised the decision, calling it a “growth-oriented reform.”
Global Trade Implications
The reduction aligns with India’s efforts to integrate more deeply into global supply chains. Lower tariffs could also help India negotiate better terms in upcoming free trade agreements (FTAs) with countries like the UK and the European Union.
FM Nirmala Sitharaman’s latest customs duty cuts signal a strategic shift towards easing business costs while promoting domestic value addition. This reform is expected to stimulate industrial growth, attract foreign investment, and strengthen India’s position as a global manufacturing hub.
Stay tuned for more updates on economic reforms and policy changes.
Note: This article is based on recent reports; for official details, refer to government notifications.