Press Esc to close
Tuesday 03 March 2015
News updated at 2:23 PM IST
Weather
Max: 31.7°C
Min : 16.9°C
In Bengaluru
clear sky

Electronic items may attract import duty

NEW DELHI, Feb 2, 2013, DHNS:
File Photo

After raising import duty on gold, a correction in duty structure of electronic products may be on the government’s radar as their imports have also largely contributed to rising current account deficit.

A consistent slow down in domestic manufacturing sector has also prompted the government to give a rethink on imposition of customs duty on electronic and other goods, cheap import of which are flooding Indian markets.

Currently, India does not levy import duties on several electronic goods, being a signatory of the Information Technology Agreement under the World Trade Organisation. So, if the import duty has to be raised, it has to be on such goods which are not covered under the agreement.

“These are mainly consumer electronics, which can attract some duty in the budget for 2013,” a senior government official said, without being specific on the items that can attract customs duty in the budget this year. According to estimates, India’s electronic goods import bill is likely to cross Rs.17 lakh crore by 2020, exceeding that of crude oil.

“It is a huge dent on domestic manufacturing, which has consistently shown a declining trend. A proposal to impose some duty on such imports is under consideration but still not reached the final stage,” a finance ministry official said.

The government recently proposed a string of initiatives to boost domestic manufacturing under the National Policy on Electronics that include development of electronic manufacturing clusters, a fund to promote research on electronic development and preferential access to locally-manufactured products.

The latest HSBC PMI data shows that the growth in India’s manufacturing slowed to a three-month low in January, as new export orders lost momentum. A slowdown in India’s manufacturing poses a risk to the already flagging economy.

The most recent official data showed that India’s industrial output grew only in three months in the current fiscal till date. In November, it unexpectedly shrank 0.1 per cent from a year earlier as exports fell for eight months in a row.

Experts say, raising of import duty on electronic items is needed not only to give boost to the domestic manufacturing, but also to stem the rising current account deficit.


Go to Top

Photo Gallery
Cambodian artists presenting dance-drama at the International Ramayana Mela...

Cambodian artists presenting dance-drama at the International Ramayana Mela...

Cyclist at the Rajpath as the national capital received early morning showers in New Delhi...

Cyclist at the Rajpath as the national capital received early morning showers in New Delhi...

A waterlogged street after the early morning showers in the national capital...

A waterlogged street after the early morning showers in the national capital...

A train moves through snow covered railway track as the region received heavy snowfall in Anantnag..

A train moves through snow covered railway track as the region received heavy snowfall in Anantnag..

Artists dressed up as Hindu deities Lord Krishna and Radha play Holi...

Artists dressed up as Hindu deities Lord Krishna and Radha play Holi...

People throw coloured powder as they celebrate Lathmar Holi at Nandgaon...

People throw coloured powder as they celebrate Lathmar Holi at Nandgaon...

Prime Minister Narendra Modi with the new Chief Minister of Jammu and Kashmir Mufti Mohammad Syeed..

Prime Minister Narendra Modi with the new Chief Minister of Jammu and Kashmir Mufti Mohammad Syeed..

Sangakkara and Thirimanne celebrate beating England in their Cricket World Cup match...

Sangakkara and Thirimanne celebrate beating England in their Cricket World Cup match...

Sangakkara congratulates team mate Perera who celebrates talking the wicket of England's Morgan...

Sangakkara congratulates team mate Perera who celebrates talking the wicket of England's Morgan...

Pakistan players celebrate with wicket of Zimbabwe's Chamunorwa Chibhabha during ...

Pakistan players celebrate with wicket of Zimbabwe's Chamunorwa Chibhabha during ...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523