Budget will encourage Make in India initiative
Encouraging value added domestic manufacturing has been an area of focus in this years Budget. Towards this, the Budget has proposed an increase of customs duty on import of finished products by 2.5 per cent to 5 per cent on many items such as specified auto parts, electronic items, PVC etc.
The Budget also proposes exemption on capital goods required for the manufacture of electronic goods in India. Besides, the exemption on imports of certain items now being manufactured in India have been withdrawn. Cumulatively, these proposals would encourage the Make in India initiative of the government
There is a specific focus on electric vehicles as the budget proposes to exempt customs duty on specified parts required to manufacture e-vehicles. In addition, there is already a proposal before the GST Council to reduce GST on e-vehicles from the present 12 per cent to 5 per cent.IANS