Synopsis
The Indian government is rationalizing customs duties to bolster the economy and promote self-reliance, as Finance Minister Nirmala Sitharaman explains in a recent interview. This move is expected to benefit various sectors and companies, including Tesla and Harley Davidson.Key Takeaways
- Customs duties are rationalized to promote self-reliance.
- Reductions in duties will benefit MSMEs and manufacturing.
- Key companies like Tesla and Harley Davidson will benefit from reduced tariffs.
- The government aims to balance development across critical sectors.
- Opposition's criticisms were dismissed by the Finance Minister.
New Delhi, Feb 2 (NationPress) The Indian government has implemented customs duty rationalisation to promote aatmanirbhar (self-reliance) in the economy, as stated by Finance Minister Nirmala Sitharaman during a recent interview with NDTV.
In response to a query from NDTV Editor-in-Chief Sanjay Pugalia regarding the budgetary decision to lower customs duties on numerous automobiles, which will advantage companies such as Tesla and Harley Davidson, she remarked that this is a proactive measure amidst US President Donald Trump's tariff announcements.
"Our focus is on strengthening our own economy and laying a robust foundation to transform India into a manufacturing hub," she elaborated.
The Finance Minister further explained that the customs duty adjustments announced in the Union Budget are intended to ensure inexpensive raw materials for MSMEs, secure critical minerals, and facilitate Indian firms in importing materials for the production of high-value finished goods.
Customs duties on Harley Davidson motorcycles were notably reduced ahead of Prime Minister Narendra Modi's anticipated visit to the US. Specifically, for motorcycles with engine capacities not exceeding 1600 cc, the duty on CBUs (completely built units) has been decreased from 50% to 40%. For larger motorcycles with engine capacities above 1600 cc, the reductions are even more significant.
While the basic customs duty on imported cars and other vehicles has been lowered as well, it remains uncertain whether the effective duty rates will witness a change.
The Finance Minister emphasized that the government is balancing the enhancement of a 'Viksit Bharat' with a strong focus on essential sectors including health, nutrition, and education through various welfare initiatives.
She also dismissed allegations from the Opposition that the BJP-led government is merely attempting to attract voters in Bihar and Delhi through the Union Budget announcements.
This Union Budget for 2025-26, marking her eighth consecutive presentation, was unveiled on Saturday.
