India to Increase Duties on $56 Billion Worth of Imports, Report Says
India plans to increase import duties on about $56 billion worth of goods, including a range of electronics, electrical goods, chemicals and handicrafts, according to a Jan. 24 report from Reuters. The announcement could be made by India’s finance minister during the presentation of the annual budget on Feb. 1, the report said. Higher duties are likely to target 50 items, including mobile phone chargers, industrial chemicals, lamps, wooden furniture, candles and jewelry, Reuters said. Import tariffs could increase by 5 percent to 10 percent, and could directly impact smartphone manufacturers and other retailers, the report said.
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India’s goal is to reduce imports of “non-essential items,” an Indian government official told Reuters. The official said increased import duties would provide a level playing field for local manufacturers “hit by cheap imports” from China, the Association of Southeast Asian Nations and “other countries that enjoy trade pacts with India.”
In a separate move, India is also considering imposing “quality standards” on certain imports because less than 10 percent of the country’s tariff lines have safety, health and environmental regulations, Reuters said. Another measure could include a Border Adjustment Tax, the report said, which would be applied to certain imports to “level the playing field for domestic players that also have to pay local taxes like electricity duties and levies on fuel.”