Union Budget 2025 | Rs 2.2k cr for exports amid widening trade deficit

Bengaluru: On Saturday, Finance Minister Nirmala Sitharaman offered a boost to exports against the backdrop of India’s widening trade deficit, which hit a record $32.8 billion in November 2024.

She announced, among other things, the setting up of an Export Promotion Mission with an outlay of Rs 2,250 crore to promote the country's outward trade. The mission will be driven jointly by the Ministries of Finance and Commerce, Micro, Small and Medium Enterprises (MSMEs).

It is expected to facilitate easy access to export credit and cross-border factoring support, and to tackle non-tariff measures in overseas markets.

"BharatTradeNet" (BTN) — a digital public infrastructure for international trade — was also announced for trade documentation and financing solutions, which will help small exporters.

The Finance Ministry also announced a reduction in basic customs duty (BCD) to reduce input costs, deepen value addition, promote export competitiveness, correct inverted duty structure, and boost domestic manufacturing — a reiteration of its "Make in India" efforts.

Doubling down on its focus on healthcare, the government added 36 lifesaving drugs and medicines to the list of medicines fully exempted from BCD to provide relief to patients — particularly those suffering from cancer, rare diseases, and other severe chronic ailments.

Another six lifesaving medicines found their way to the list, which currently attract concessional customs duty of 5 per cent.

She also reduced the BCD to 5 per cent on open cells and other components, to further boost the manufacturing of such cells.

On the flip side, creating some trade barriers, Sitharaman proposed to increase the BCD on interactive flat panel display (IFPD) from 10 per cent to 20 per cent.

When it comes to capital goods, the Finance Ministry exempted 25 goods required for EV battery manufacturing and 28 for mobile phone battery manufacturing in order to push domestic manufacture of lithium-ion batteries, both for mobile phones and electric vehicles.

The time limit for the export of foreign-origin goods imported for repairs has been extended from six months to one year and is further extendable by one year for railway goods.

In another move, a focus product scheme was announced to support design capacity, component manufacturing, and machinery required to make non-leather quality footwear.

This scheme is expected to facilitate employment for 22 lakh persons, and generate a turnover of Rs 4 lakh crore and exports of over Rs 1.1 lakh crore.

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Union Budget 2025 | Nirmala Sitharaman, as Finance Minister, presented her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', the Modi govt gave income tax relief for those making up to Rs 12 lakh per year in salaried income. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.