Synopsis
On Feb 2, Finance Minister Nirmala Sitharaman announced customs duty rationalisation aimed at enhancing self-reliance in the Indian economy. This move, discussed in an NDTV interview, focuses on making affordable raw materials available for MSMEs and boosting manufacturing in India.Key Takeaways
- Customs duties rationalisation introduced.
- Aim to make India aatmanirbhar.
- Focus on strengthening the manufacturing sector.
- Reduction of tariffs on Harley Davidson bikes.
- Balanced approach towards key sectors and welfare schemes.
New Delhi, Feb 2 (NationPress) The Centre has implemented customs duty rationalisation to ensure that the Indian economy becomes aatmanirbhar (self-reliant), Finance Minister Nirmala Sitharaman stated in a post-budget discussion with NDTV.
Sitharaman addressed NDTV Editor-in-Chief Sanjay Pugalia's inquiry about whether the budgetary decision to lower customs duties on numerous automobiles, benefiting firms like Tesla and Harley Davidson, signals a response to US President Donald Trump's tariff policies.
"We are focused on our own economy. Our goal is to fortify the foundation of the Indian economy, transforming it into a manufacturing hub," she remarked.
The Finance Minister elaborated that the Union Budget's announcement regarding the reduction of customs duties aims to make affordable raw materials accessible for MSMEs, acquire essential minerals, and enable Indian enterprises to import materials and export high-value finished products.
Tariffs on Harley Davidson motorcycles were lowered ahead of Prime Minister Narendra Modi's planned visit to the US. For bikes with an engine capacity not exceeding 1600 cc, the duty on CBUs (completely built units) has been reduced from 50 percent to 40 percent. The reductions for larger motorcycles with engine capacities exceeding 1600 cc are more significant.
While the basic customs duty on importing cars and other vehicles has also been decreased, it remains unclear whether their effective duty rates will change.
The Finance Minister noted that the government has struck a balance between strengthening the foundation of a 'Viksit Bharat' and equally emphasizing crucial sectors such as health, nutrition, and education through welfare initiatives.
She dismissed the Opposition's criticisms suggesting that the BJP-led Centre was merely attempting to gain favor with voters in Bihar and Delhi through the Union Budget announcements.
Sitharaman presented the Union Budget 2025-26, which marked her eighth consecutive presentation, on Saturday.
