Budget 2021: Centre to increase import duties by 5-10% on more than 50 items

As part of Prime Minister Narendra Modi’s vision to make India ‘Atmanirbhar Bharat’ that primarily aims at promoting and supporting domestic manufacturing, the government has been considering raising the import duties by 5 percent to 10 percent. 

On February 1, 2021, Nirmala Sitharaman, the Union finance minister will unveil the annual federal budget for the financial year 2021-22 that will start from April 1. The unveiling will take place in the middle of the estimated economic contraction of 7.7 percent of the current fiscal year.

According to government sources, the government has been seeking to target an additional revenue of about INR 270 crore to INR 280 crore ($2.7 billion to $2.8 billion). The goal is to shore up the revenue during the pandemic as it has affected the economy of the country.

Three government sources who were in the discussions had told Reuters that the import duties will increase by 5 percent to 10 percent for more than 50 items, including smartphones, electronic components, and appliances.

Even though the officials had said that the hike on vehicles and electric cars has not been specified, the rise in import duties could have a potential impact on Ikea furnitures and Tesla electric cars respectively. Tesla is planning to come to India soon and this might be a major cause of concern as previously, the executives of Ikea and Tesla have already raised concerns about the same as their products already face a high import duty in India. However, more concerning is that the chances of gaining a higher import duty on home appliances, including air conditioners and refrigerators. As of last year, India had hiked import duties on many products such as footwear, toys, furniture, electrical and electronic items up to 20 percent.

The proposals for the rise in import duties may still be tweaked and may fall subject to change as they have not been finalized yet. According to government officials, in order to promote India as a significant destination for local manufacturing and to also support domestic businesses, such taxes are absolutely necessary.


Please enter your comment!
Please enter your name here

Hot Topics

Apple’s iPhone 13 lineup tipped to use Qualcomm Snapdragon X60 5G modem

Apple is planning to launch the iPhone 13 lineup and the latest rumors are hinting that the upcoming iPhone series could use Qualcomm Snapdragon...

OnePlus 9 specifications leak on AIDA64 ahead of the expected launch in March

The OnePlus 9 series is definitely one of the most anticipated smartphone series that will be launching in 2021. It is heavily rumored that...

Realme launches affordable 5G gaming smartphone series Narzo 30 Pro 5G and Narzo 30A

Narzo 30 Pro 5G is powered by MediaTek Dimensity 800U 5G Chip with 5G+5G DSDS, benchmarking at 340,000+. Realme Narzo 30A comes with...

Related Articles

India to witness the largest number of electronic launches in 2021: Experts

The shortage of television panels for entry-level is still plaguing the sector. 2021 would witness the largest gadget launches because the supply chain...

Samsung One UI 3.1 update is here: Here’s a quick look at the new features

Samsung’s latest One UI 3.1 software update has started rolling out for Galaxy S20 series, Galaxy Note 20 series, Galaxy Z Fold 2, and...

Mysterious malware ‘Silver Sparrow’ infects 30,000 Apple Macs

Reports about an unknown malware being detected in thirty thousand Apple Mac devices have been surfacing. The unknown malware detected has been named ‘Silver...