NEW DELHI : India has drawn up a list of over 35 items that are being examined for a possible customs duty increase in the upcoming budget, scheduled to be announced on February 1.
Private jets, helicopters, high-end electronic items, plastic goods, jewellery, high-gloss paper and vitamins are among items that are on the list prepared by the Government. “A list has been drawn up based on the inputs from various ministries that are being examined,” said a Government official. The move is aimed at curtailing imports and also to encourage local manufacturing of some of these products.
The commerce and industry ministry had in December asked various ministries to ready a list of non-essential items, imports of which need to be discouraged through import tariff hike.
India’s current account deficit (CAD) rose to a nine-year high of 4.4% of GDP in the quarter ended September from 2.2% of GDP in the preceding quarter.
A fall in global commodity prices may have eased some worries over the widening CAD, but policymakers want to be cautious.
Exports are expected to be under pressure in FY24 following demand contraction in advanced economies. Economists see CAD at 3.2-3.4% of GDP in the next fiscal. “With local demand set to outpace export growth, the merchandise trade deficit could remain at $25 billion per month, translating into a CAD of 3.2-3.4% of GDP,” said chief economist Aditi Nayar.
