Reduction in import duty on raw materials possible to boost manufacturing industry

20-Jan-2025 07:52 PM

In the upcoming general budget for the financial year 2024-25, which will be presented on February 1, 2025, the Indian government may announce a reduction in the customs duty on raw materials used in the manufacturing of medical equipment, electronics, and footwear, among other sectors.

This move aims to lower production costs, which could help boost domestic manufacturing and increase exports.

Industry players have long advocated for such a measure, emphasizing its potential to enhance competitiveness and promote growth.

In addition to supporting manufacturing, the government is expected to focus on the agriculture sector, particularly to reduce the country’s dependence on imports of pulses and edible oils.

To achieve this, there could be policy changes to promote the domestic production of key crops such as tuvar, urad, moong, chana, and masoor pulses, as well as oilseeds like soybean, groundnut, mustard, sesame, and sunflower.

The increasing import bills for these items have placed pressure on India’s economy, and efforts to boost local production would help ease this burden.

Moreover, while the production of key cereals like wheat, rice, and maize has become more stable, the demand for maize continues to rise rapidly.

The government may introduce policies to further increase maize production to meet this demand. As with previous years, significant budget allocations for agriculture are expected, along with announcements aimed at enhancing the sector's overall growth and sustainability.