India has compiled a list of 35 items that are being considered for a potential hike in customs duties in the 2023 budget, which is expected to be released on February 1.
Among the products on the government-prepared list are private aircraft, helicopters, high-end electronics, plastic goods, jewellery, high-gloss paper, and vitamins. Based on suggestions from various departments, a list has been created and is being scrutinised by a government official. The action aims to reduce imports while simultaneously promoting local production of some of these goods.
The Commerce and Industry Ministry requested that several departments prepare a list of non-essential goods whose importation should be discouraged by an increase in import tariffs in December.
India’s current account deficit (CAD) increased from 2.2% of GDP in the quarter prior to September to a nine-year high of 4.4% of GDP.
Although a decline in global commodity prices may have allayed some concerns about the widening CAD, policymakers still want to exercise caution.
Exports are anticipated to be under pressure in the fiscal year 2024 as a result of declining demand in the advanced economy. The next Financial year’s CAD is predicted to be between 3.2-3.4% of GDP. The merchandise trade deficit could stay above $25 billion per month, which translates to a CAD of 3.2–3.4% of GDP, as local demand is predicted to exceed global export growth.
A component of a long-term plan
As part of a long-term plan to promote domestic manufacturing, policymakers are likewise eager to restrict the import of non-essential items.
The AatmNirbhar Bharat strategy to increase domestic product has been supported by New Delhi by increasing customs tariffs on a number of items over the previous few years in support of its Made in India programme, which was launched in 2014.
In order to promote local manufacturing, the government increased import traffic on a variety of goods in the fiscal year 2023 budget, including headphones, umbrellas, and counterfeit jewellery. Imports of yellow metal will be restricted in 20222 due to a rest period for the gold market.
Import Export Code registration in Dwarka
Import Export Code Registration in Delhi
Import Export Code Registration in Noida
Import Export Code Registration in Gurugram
Orders for Quality Control
The government has also issued a quality control order to limit the importation of non-essential cheap goods. The officials indicated above consider goods that are currently produced in the nation to be set.
For instance, various initiatives, such as an increase in import traffic, have enabled the nation to reduce toy imports by 70%. Because of this, the nation’s toy exports are expected to grow 240% to Rs 2,706 crore in 2021–2022 from Rs 797 crore in 2014–2015.