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The Indian government, under the leadership of Finance Minister Nirmala Sitharaman, has taken a significant step towards enhancing the country's external competitiveness by reducing Customs duty on approximately 50 products. This move is aimed at stimulating trade and promoting economic growth. The reduction in tariffs applies to a wide range of goods, including mobile phones, leather products, ferro-nickel, blister copper, and capital goods used in the manufacture of solar cells, modules, and petroleum exploration operations. Notably, 25 critical minerals have been exempted from Customs duty, signifying the government's commitment to supporting strategic industries.
This decision to reduce Customs duty is a strategic move to make Indian goods more competitive in the global marketplace. By lowering the cost of imported raw materials and finished goods, the government is aiming to reduce production costs for domestic manufacturers and make their products more attractive to international buyers. This, in turn, is expected to lead to increased exports, job creation, and overall economic growth. The government's focus on reducing Customs duty aligns with its broader economic agenda of promoting self-reliance and building a strong manufacturing base in India.
Furthermore, the Finance Minister has announced a comprehensive review of the Customs duty structure over the next six months. This review is intended to ensure that the duty structure is aligned with the government's economic objectives and remains conducive to fostering trade and investment. The government is likely to consider various factors during the review, including the impact of current duty rates on different sectors, the need to protect domestic industries, and the global competitiveness of Indian products. The outcome of this review is expected to have a significant impact on the trade environment in India and shape the future of the country's economic landscape.
Source: Boosting trade