While all eyes are on several aspects of the Budget, in FY24, the exports are reportedly expected to be under pressure due to a concentration of demand in advanced economies.
Budget 2023 preparations are in full swing and as per latest reports, India has made a new list of over 35 items that are under the scanner with regards to customs duty. While the exact changes may be announced only in the Union Budget, there is reportedly a possibility of some items experiencing an increase in customs duty.
According to a report in the Economic Times, private jets, helicopters, high-end electronic items, plastic goods, jewellery, high-gloss paper and vitamins are among the few items being considered for an increase in customs duty. “A list has been drawn up based on the inputs from various ministries that are being examined,” ET quoted a government official as saying.
The report adds that the Ministry of Commerce and Industry in December asked several ministries to prepare a list of items that are non-essential. The idea was to have a list of items whose imports need to be discouraged through import tariff hike.
While all eyes are on several aspects of the Budget, the report mentions that in FY24, the exports are expected to be under pressure due to a concentration of demand in advanced economies. Hence, another reason for the expected hike in customs duty is to curtail imports and to encourage local manufacturing of some of these products.
The Union Budget 2023-24 will be presented on February 1, 2023 by Finance Minister Nirmala Sitharaman. This time, however, the Parliamentary session of the Budget will begin on January 31 and along with the Budget presentation, even the Economic Survey of India will be presented.