New Delhi: Finance Minister Nirmala Sitharaman will present the general budget for the financial year 2023-24 on February 1. In this, it can be announced to increase import duty on many types of goods. According to sources, import duty on more than 35 items can be increased. Based on the inputs received from various ministries, the government has prepared a list of such goods. These include private jets, helicopters, expensive electronics items, plastic items, jewelry, high-gloss paper, and vitamins. In order to reduce imports and promote the production of these things in the country, import duty is being increased on them. The government believes that this will strengthen its self-reliant India mission. Last year also, the government announced to increase in the import duty on many things in the budget.
In December, the commerce and industry ministry asked various ministries to prepare a list of items that do not come under essentials. The government wants to reduce its imports by increasing the tariff on the goods included in this list. The country’s current account deficit ie CAD reached a nine-year high in the quarter ending September. It was 4.4 percent of GDP in the September quarter, compared to 2.2 percent in the previous quarter. The fall in global commodity prices has eased some concerns about the CAD, but the government is leaving no stone unturned.
Government’s long-term plan
The International Monetary Fund (IMF) has warned that one-third of the world’s countries may fall into recession this year. This includes America as well as many countries in Europe. This recession can also affect India because there is a possibility of pressure on India’s exports due to the recession in developed countries. Experts say that the current account deficit could be 3.2-3.4 percent of GDP in the next financial year. According to ICRA Chief Economist Aditi Nair, local demand will be more than exports. Therefore, the merchandise trade deficit can be $ 25 billion every month, which is 3.2-3.4 percent of GDP.
Sources say that increasing import duty is part of the government’s long-term plan. The government wants to promote the production of these things at the local level. The government started the Make in India program in 2014 and since then taxes on imports of many things have been increased. In last year’s budget, import duty on imitation jewelry, umbrellas, and earphones was increased. Prior to that, the import duty on gold was increased.