India ramps up duty on some electronic goods
Levy on mobile phones, digital and video cameras, and televisions hiked by up to 10 per cent
India increased the customs duty on some electronics including mobile phones, television sets and microwave ovens in a bid to curb imports and boost local manufacturing.
The levy on mobiles and TVs was raised from 10 to 15 per cent, according to a ministry of finance statement. Duty on digital cameras, video cameras and projectors was doubled to 20 per cent.
India’s electronics imports grew about 31 per cent to US$29.8 billion during April to October from a year earlier, the steepest increase after shipments of ores and gems. While the latter feed into reexports, mobile phones and TVs are for domestic consumption and account for 12 per cent of total imports, contributing to a widening current account deficit.
Moving production of similar goods to domestic factories would also boost the prime Minister Narendra Modi’s ‘Make in India’ push and help contain India’s trade shortfall with China. The gap was about $49bn last year, by far India’s biggest bilateral deficit.
Updated: December 16, 2017 01:34 PM