No major changes to import duty

Budget may raise tariffs in specific sectors to boost local production

- Gireesh Chandra Prasad

The government is unlikely to roll back customs duty exemptions in the Union budget significantly but may increase duty rates on specific sectors to promote local production, a person familiar with the discussions in the government said.

In the current year's budget, the government announced the removal of duty concessions for nearly 400 items, including capital goods, farm products, medical devices, and textiles, to discourage imports and support domestic production, as seen in the previous two budgets.

"That exercise was undertaken after public consultation and has been completed. No further removal of exemptions is thought of at this juncture," the person said, declining to be named.

Duty concessions on highly advanced industrial machines will continue

In addition, the strategy of lowering import duties on selected raw materials to promote local value-addition and support some export

In addition, the strategy of lowering import duties on selected raw materials to promote local value-addition and support some export industries will continue, the person said.